There is never a singular answer for why markets do what they do, why stocks rise and fall, or why investor sentiment changes from one day to the next. With that in mind, maybe the best explanation of what’s going on right now is that there are a lot of reasons for investors to be freaked out, and so they are.
To name a few of these reasons: inflation, interest rate increase, anticipated recession, market confusion about the FED, the situation in Ukraine, and COVID outbreaks in China.
Conventional ideas:
- During uncertain times, is keeping cash the safest move?
- Moving assets is not equivalent to cashing out.
Interesting quote:
As life gets back to a more normal state compared to where it was at other points in the pandemic, some of the trends that made certain companies attractive are reversing. People are going back to life in the real world and relying a little less on the internet for every part of their lives.
Posted Using LeoFinance Beta
I think cash is always a good position to have. You should trim down your risky assets and focus on protecting/building your core positions.
Posted Using LeoFinance Beta
In the stock market, holding cash works for me. In crypto, there is a big difference. Though the cash value of my holdings is declining, their number is growing. Unlike in stocks, it's the same quantity whether the price goes up or down.