Nov. 29, 2022

Getting Caught Up in the Cryptocurrency Hype


The cryptocurrency industry is one of the most volatile and unpredictable industries in the world. In just a few short years, the industry has gone from being relatively unknown to being worth billions of dollars. 

The recent drama surrounding the FTX cryptocurrency exchange is a cautionary tale for the industry. It is a reminder of how quickly things can go wrong in the Wild West world of crypto and how easy it is for investors to get caught up in the hype.

In this episode, Doug and Greg talk about one of the latest and biggest market events, the fallout of cryptocurrency. As a part of the weekly news digest, the two also speak about inflation and how the FTX's fallout repeats history.


Key Takeaways

  • [00:53] - Two potential outcomes in today's economic climate.
  • [02:06] - Greg's take on a good inflation print.
  • [04:41] - The FTX fallout.
  • [08:32] - What the new CEO of FTX has to say about FTX's bankruptcy.
  • [10:30] - The experts' take on what's holding up inflation at this point.
  • [12:15] - Doug and Greg's market prediction for the year ahead.
  • [15:07] - What may cause the Federal Reserve to a halting scenario.
  • [19:30] - How the FTX's fallout is repeating history.
  • [22:45] - Greg's advice for investors and money managers.


Quotes

[12:15] - "My prediction for next year is that if we have a bad market year, bonds will return to being diversifiers, and the 60/40 will be alive again." ~ Doug Stokes

[13:22] - "Even if we have a recession, the markets may still be up, and bonds may still be up, too, because bonds will have priced in the fact that inflation is coming down." ~ Greg Stokes

[14:17] - "Markets are the most up-to-date snapshot of human psychology and how people feel about buying and selling assets at any time." ~ Greg Stokes

[22:56] - "If you get excited about something, try to allocate a small percentage of your net worth to it. So if it doesn't work out, it won't sink the ship." ~ Greg Stokes


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Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.