NOOO... SO, HOW LOW WILL IT GO

The time has come, this is the worst start of a year for stocks since the 1930s! The NASDAQ had its worse month April since 2008! The NASDAQ has been in a bear market and in correction territory for a majority of the year being down over 25% YTD! A death cross appeared first and then a head and shoulders pattern, bearish times were being foreshadowed over our shoulders for months! Prices are now hovering around the price they were two years ago around August/November 2020, which is a 68% increase from COVID lows in March 2020. This is a pretty strong support level that was hit multiple times around that year and was even a Fibonacci retracement support level. The NASDAQ was up an unbelievable 125% by December 28th, 2021 from its price of $166 on March 18th, 2020 to $404.

This could have been predicted by most retail investors since prices were rising in basically every direction you could look and for the main reason being, the Federal Reserve was on our team ramping up the economy by enforcing monetary policy, taking a different approach that other authority figures have taken in past history which failed.

Jerome Powell didn't sit in the corner and suck his thumb expecting things to fix themselves during quarantine, Mr. Powell went to action and applied pressure trying to keep this big snowball of an economy rolling. Of course printing money is going to raise inflation but if the economy evolved like it should have during this time, it should be strong enough to withstand rising interest rates. The Federal Reserve waiting last minute to lower the balance sheet and raise interest rates to slow down the economy, giving the markets more than enough time to reach all time highs (which gave investors more than enough time to take profits and prepare their portfolios for a hawkish Federal Reserve).

Many have compared this bull market to the Dotcom Bubble since many speculative growth tech companies price rose to prices that did not make sense. One of the main rules of investing is to be fearful when others are greedy and greedy when others are fearful. Last year I was fearful but now I am starting to become greedy since everyone is scared selling creating discounts in hopeful opportunities. Most of the NASDAQ prices were cut in half, SPACs and IPOs were shredded to pieces now a fraction of what they were a year ago. This is presenting an opportunity to enter investments at an actual reasonable price, this does not mean that every stock that is down +50% is a good choice, the more speculative companies have gotten hit the hardest and will continue their blood bath for the time being. Remember one of Warren Buffet's main mottos, A great company and a fair price is better than a fair company at a great price.

Bitcoin was suppose to go to 100k according to retail investors, but it hit a low of 4k March 2020. How is an aasset that has not changed much going to skyrocket to such an outragous price. Back in 2018 when the crypto hype began Bitcoin's price had a similar trajectory and took over three years (and a market similar to the Dotcom Bubble) to recover. If you researched Bitcoin's price during this bullmarket you would expect the price to correct back to 20-30k since their was a huge spike around that level, as well as a correction a year prior to the similar level during a less severe circumstance (China banning the asset). If you are a long term holder of Bitcoin you should not worry and expect such volitility consistently. History is on your side though, since everyone who has held Bitcoin for three plus years has been up!