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DPI, Cobalt & The Evergrande Crisis

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Written by   740
2 months ago

There is a lot of talk around Evergrande and its default status, as people start seeing flashbacks of 2008 and how another crisis can be looming over us all.

Down in the crypto markets, uncertainty abounds amidst regulating action, Tether fraud on thin ice, and other negative arguments.

Things look bleak, but the wise man knows that this is the time to get his investor cape to make sure he takes advantage of the situation - because with every crisis comes opportunity.

This isn't to say that to venture now is to be risk-free, far from it, it is risky - but extraordinary results demand extraordinary action.

So, will you simply keep on cashing out Mesel's stash from Read and Noise.Cash or will you do something wise with those funds, trying to get the opportunity to snowball some cashflow?

Here's is how I see all of this situation and what I just did a few minutes ago.

Evergrande Crisis Holds Gold: Gold Can Probably Still Rise

One of the things you may have noticed is that Gold price is holding firm.

This is to be expected as smart money avoids the impending downtrend caused by the financial crisis by stocking up on the precious metal.

However, this time it can be different.

Granted, I think gold still has room to invert the downtrend if things go south, and I still find it logical that some people will want to bet on this...

...but this time I'm noticing quite a few of my usual gold bug contacts shifting their gears and avoiding gold altogether, going for a surprising alternative.

I think Gold will become a bit less important in the commodities market with time, and other assets will replace it, and not just crypto.

Typical Gold Investors Notice a Trend: Choice "Safety" Stocks or Commodities

What I've been seeing is that the usual gold bugs, who go towards gold for stability, have started to shift gears and head into other rare compounds.

These rare compounds are manganese, cobalt, nickel, lithium... you know the rest.

Yes, these are the very rare compounds used to craft high-grade batteries for cars and the like.

The economy is shifting, and its safe bets will inevitably shift with it.

Why?

Well, here's the kicker...

You see, Gold used to be the safe bet because it would be used for jewelry, some tools, a bit of electronics, it had fair use. Not only that, people used to utilize this metal as currency.

Now, things are changing... gold is being used less and these rare metals are being used increasingly more...

...and guess what?

They are extremely rare!

Manganese, cobalt, and the likes are beginning to seem a lot like Gold, only safer, and the usual gold bugs and smart money crew are noticing it.

They are either buying the commodity or just investing in miners for it, which is riskier in my honest opinion.

Regardless, this is an interesting trend if you think about it, and certainly very interesting and worthy of an extra look.

Enter the Decentralized Finance Pulse Index DPI: Right Time to Buy

Now, here's what I did a few minutes ago - I did another round of average cost buying into DPI.

Those who follow my blog know that I invested in DPI a while back when some people were talking about it, and so far it's not doing very well... but I think that will change so I am using these drops to dollar cost average.

Why is it the right time to buy now?

Well, there are still some DeFi projects holding, but most of them are dropping considerably and the DeFi space could be doing a lot better - granted this is predicted by the index's rebalancing formulas and whatnot... but now the crypto space is all shaky with these latest drops and things look quite negative - which tells me to keep on stacking as we're nowhere near the top.

If you like DeFi like I do (I still have exposure and money pooled into several different DeFi Protocols), then buying DPI now is a no brainer - unless your portfolio has no safe options and its all a high-risk clusterfest (in that case, opt for a safer bet like Covered Calls ETFs or... Cobalt? )

Hands Are Shaking in Both Regular and Crypto Markets: Don't Sell Now, Maybe Look at Covered Call ETFs

So, the most important thing to bear in mind is that now, when fear abounds, isn't the time to sell - probably, what do I know - but maybe it's time to check if your portfolio is too risky for your own good.

For those who love DeFi, I already suggested dollar-cost averaging into DeFi Pulse, but what about for those who hate it?

Well, you should take a look at Covered Call ETFs, which are much safer than Crypto and are a new mainstream investment form that yields about $100 per month for each $10,000 invested, which isn't too shabby. (Depending on the covered call ETF, but there aren't many good ones yet).

This can be a good way to have access to higher "dividend" yields from the mainstream economy if you want to hedge your risk.

A Real-Estate Boosted Crisis Like 2008? Here's How I See It:

So, will this be a new real-estate-based crisis like we had in 2008 / 2009?

Well, frankly, I don't care.

When things go up we make money, when things go down we have the opportunity to make money...

...but it's MUCH MORE than that!

I'm 33 years old, I've been living in crisis all of my life, I graduated and started working in 2010 right after the crisis banged our doors.

I am used to the crisis, I never saw a fat cow in my life, this is business as usual.

Just don't throw another plandemic at me, they freakin suck!

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Written by   740
2 months ago
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Comments

Damn I just sold some BCH lol... but it's okay I guess, needed to buy something :) also, nice to meet you :)

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