Which one of these widely believed banker myths do you believe that keep you swimming in risk?
One. Man never learns from his mistakes (in financial markets) and is bound to repeat the same mistakes.
Most everything that happens in financial markets is carefully deliberated, planned and executed and most definitely not a “mistake”.
2. When stock markets crash, Central Bankers always state, “no one could have seen this coming.”
Of course they can see it coming, because Central Bankers create the massive stock price distortions, so they know a stock market crash is coming (there likely will be a crash before this year ends, as the belief that Central Banker policies can forever elevate stock prices is fantasy, not reality).
3. Bitcoin is a store of value.
Bitcoin is a great speculative asset that allows people to garner massive profits quickly, but any form of money, less than twenty years old, that crashes in price by 85% in one year (2018) cannot possibly be a store of money, no matter the spectacular gains in other years. Any company would be glad to convert all of their corporate cash and short-term holdings into money that is a store of value. For example, if Apple had converted all their Treasury cash into BTC during the entire duration of 2018, such a drastic drop in BTC’s price may have caused panic. BTC actually served more as a store of money during the first 9 months of 2015, due to much lower volatility (as compared to today) and prices that consistently traded in the $200 to $300 price range.
4. Central Bankers are foolish and don’t know what they are doing in creating the bizarre economic situations that exist today.
See number one. Central Bankers know exactly what they are doing.
5. There is little to almost no risk in today’s US stock markets as there are trillions of liquidity created by the US Central Bank in response to lockdowns in 2020 waiting to hit the stock market.
Risk in US stock markets has never been higher at any point in the last decade.
6. Even at $47,500, there is little risk in BTC as most “experts” expect BTC to break $100,000 and some expect it to break $200,000 by the end of 2021.
There is a ton of risk in BTC at this price. This, however, does NOT mean that the price can’t continue to move higher. The concept of risk and price behavior in the short term are not the same. Risk is a concept that while it can apply to the short term, is more likely to manifest in the intermediate to long term.
7. BONUS: There is very little risk to gold and silver assets during this seasonal period every year.
Time frame and truth revealed only to skwealthacademy patreons (to be released to patreons later this week).
Of course, there are more widely believed finance myths than just the seven listed above, but these are among those being most repeated in financial media now. And the less of these that you believe, the less likely you will to make critical mistakes that may set your financial future back by years.