For the second time this week, someone who has never been interested in trading or investing has asked me if they should buy a specific digital coin. Calling tops is a fool’s errand. But it’s safe to say the top is one day closer than it was yesterday. I’ve been reading Zero to One by Peter Thiel, in which the dotcom bubble is described as an 18-month frenzy. If we calculate the start of the latest bull run from April 2020, we would still have another six months of glorious speculative madness providing huge amounts of liquidity and volatility. But as we come closer and closer, the spikes go higher along with the risk. Still, we could be in for a fun summer.
I have actively started moving capital into small-cap stocks that I believe have potential to weather the inevitable storm. These are uptrending and have strengthening fundamentals – stocks which I would like to add should any fast money exiting present any opportunities. Longer-term positions are now forming a part of my strategy in the stock market along with my active trading strategies that we look at in the column. I’ll be posting some of these on Twitter and look forward to hearing any of your thoughts.