Wednesday, 27 November 2024

Time to take profits or just ride the wave?

On my previous post, I mentioned about my investment portfolio reaching ATHs. When things get a little too high, I do always wonder if I should be taking profit but at the same time thinking what if I took profit and it continues going up? Or if I took profit, where should I invest it into, ETFs?

It is a dilemma and something that I struggle with in a bull market. In a bear market, you can go ahead and buy as long as you still have income as you know the recovery will come but in a bull market, do you continue to add or sell some to secure some profits?

Crypto has really grown in the past few weeks and it now takes up about 30% of my total investment portfolio. That is pretty large for me, I wasn’t expecting 30% until I calculated it today. My Bitcoin holdings used to be half of my Ethereum holdings but it has grown to being larger than it slightly, there are a lot of Ethereum memes and jokes on X and I have to say that I relate to them in terms of missing out on gains compared to Bitcoin and Solana which have both hit new ATHs this cycle.

I still feel that Bitcoin can go higher especially since we heard of Microsoft thinking of adding Bitcoin to their assets although the board is opposing it, the major shareholders of Microsoft are Vanguard and Blackrock where we do see that may go through but we do not know exactly. So on December 10, 2024, we shall see and if it goes through, Bitcoin does seems to be an asset that public listed companies might want to add onto their balance sheet. Microsoft did say if approved, they will add but definitely not much but just about 1% and if every other company did that, it would add up. We do also look forward to when Trump assumes office and announces the Bitcoin as part of the strategic reserves for USA, together with more pro-crypto team.

'Be Fearful When Others Are Greedy And Greedy When Others Are Fearful' - Warren Buffett

This rings in my head every time we hit an all time high and we know that Bitcoin works in cycles. So retracement happens and crypto winter does occur, I do have a plan to take profits but still thinking about the eventual plan and how much do I exactly want to hold onto. Just yesterday, 25 November 2024, there was a pullback in crypotocurrency and for Tesla as **Tesla is Excluded From EV Buyer Credits in California Proposal.** This is how volatile the holdings that I have. In the meantime now, I will be holding on, riding on and following my plan once the prices are touched. Good luck to all!

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