The Day of Reckoning Always Comes
There is blood in the streets….
It is simple physics, for every action, there is always an equal and opposite reaction. While this law of physics is specific to motion, it can be applied to everyday life. There is regression in everything that builds in this world. Whether it be under the business vertical or from just a lifestyle perspective, everything will regress towards a natural balanced mean…. eventually.
I think a good example that highlights this philosophy better than anything is the Tiger Woods scandal. Here is a man who was living life a 100mph and fucking everything that walked….. boom. 7 iron right to the side of the head… a real life tangible metaphor I suppose…there will always be a correction.
Now lets pivot to an example that is a little more relatable than a billionaire world class golfer…..how about the markets…. and maybe crypto specifically.
“I am so fucked”
“I have literally lost 5k in 12 hours”
“I just hit the weed pen 6 times and have been watching Steve Nash highlights for 4 hours”
These are just a few texts that I received from my top tier equities analyst Friday afternoon as cryptocurrency prices began to sink. There was blood in the streets and unfortunately most of the people who lost their asses are the ones who cannot afford to lose 85% of their life savings on shit coins named after a dog. These same people are the ones I include when I do my “Facebook Top Signal” due diligence.
What is the “Facebook Top” you ask? Well it is simple… It is usually a pretty good indicator that if a certain topic (in this case equities/crypto) reaches the the open dialogue and lexicon of Facebook, then you are no longer ahead of the curve in any capacity. If you see the kid from high school that would go bananas over eating crispitos and hot cheetos start to post about “going to the moon” on Facebook, odds are you are fucked.
So what are you supposed to take away from this post? stay even keel.
In markets, just like in life, there will always be times of ecstasy where it seems you have it all figured out. Take your profits and remember that there is a storm always lurking.
If you want peace, always prepare for war.
-F.S.