On the eve of America’s presidential inauguration, just hours away, we are at a historic moment of change. On this cusp of a transition point, with USA divided against itself, with enemy nations at the borders, with the propaganda war for the minds of all involved, we can be certain that “the times they are a-changing”, as Bob Dylan sang in the late 1960s. At times like these it pays to have the skills of adaptability and flexibility, lest we find ourselves stuck in the past, a past that has just left the building.
On the surface it appears as if President Trump is exiting the White House and vice president Biden is taking up position as the new leader of the biggest military on earth. But underneath there is something else brewing. We, the people, cannot be certain of what it will be like even in 48 hours from now. That’s how uncertain this moment in history is right now, one day before the inauguration.
Naturally there are people on both sides of the divide, predicting opposing outcomes. Similarly the markets are filled with FUD (fear uncertainty and doubt). Looking at the US dollar pairs as well as the DXY or dollar index (against a basket of currencies) it appears as if the greenback has peaked in strength and has begun a downtrend.
Add to this the fact that this week is filled with imminent economic news or data which could swing the currency based on that news. And as a result sentiment is mixed. And it is sentiment that determines the direction when trading forex and commodities, as well as cryptocurrency. More than fundamentals and TA (technical analysis), we need to monitor the sentiment.
This could be a volatile week ahead, with all the projected stats and data on the mainstream market about to be released. Looking at the VIX or volatility index, some say it is about to blow. From Hong Kong and the Asian markets generally, all the way to Wall Street, the whole world is watching right now as history is being made.
Now is the time that you want to be invested in safe haven assets. And I don’t mean the dollar, or the Japanese yen, or even gold. At such uncertain times as we have now before us, it pays to be flexible, adaptable and willing to make a change in your old paradigms of reality. It pays, for example, to look toward cryptocurrency as the new safe haven in our changing world.
If you are stuck in your old paradigm, like Warren Buffet, once the biggest legend in the financial world, you may be left holding the bag while other more adaptable investors forge ahead and keep ahead of the curve and ahead of the herd. Despite being the biggest investor for decades, running his investment company Berkshire Hathaway like a smooth machine in the financial world, Buffet was left behind because he could not see the opportunity that cryptocurrency offered as an investment.
As a result he stayed with his 5-10% gains but missed out on 500-1000% profits instead. Yes indeed, cryptocurrency was making 10x gains on average over the past few years already, but due to being inflexible, Buffet missed the opportunity. Age will do that to you, so it is also just about being on the right side of history.
However, it is also about being willing to adapt and change with the times. Opportunities come and go and we need to be open to them even if they pull us out of our old comfort zones. The trend is your friend, but when the trend shifts, so must you. We must be willing to go from bullish to bearish if the trend dictates. Permabulls or perma- anything will not help you in today’s historic time of change.
This applies to all sectors of life and particularly to finance, investment and trading. I have seen that even in the crypto industry itself, those projects that were leading the way in 2017/8, and were up at the top of the market cap list, are now slipping down to insignificance while new ones enter the scene and take up the top 40 hit parade.
Massive gains are already appearing among these newer emerging cryptocurrencies, while the legacy tokens stagnate or fail to ever return to their former highs. I won’t mention names, since it’s a contentious issue and tribalism is rife. Nevertheless, I am presenting here more the philosophy of being flexible and adaptable during these current historic times of change. Look at yourself now and analyze your ability to adapt, to move outside of your comfort zone or tribe. It may help you significantly in the coming global shake-up.
(image pixabay)