It's been a rough start for 2022 when you compare the markets and how they have performed the month of January 2022. If you carefully look at the last 6 months in this picture below, we are pretty much back at where we were at July 30, 2021 (with the S&P 500 at 4395.26). Amazing how fast things can change, basically pushing you back to 6 months in time.
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S&P500 in last 6 Months (Source: Google Finance)
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In the past month itself, (as of Jan 23, 2022) it seems like the S&P 500 is down roughly 8.21% , Nasdaq which further got a heavier blow is down 13.25% and Dow is roughly 5.61% down. Similarly in Crypto land (cryptocurrencies), Bitcoin is down 28.89% while Ethereum is at 34.52% downwards. So scary moments?
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| Bitcoin to USD in last 1 Month (Source: Google Finance) |
I disagree to call this a scary moment as Warren Buffet has rightly said
"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful". I am getting greedy at the moment, and buying as much as I can. I am not trying to be picky or particular about certain stocks, I am just focusing on investing passively as a safer bet and putting in more money in the indexes as I can. As a long term investor, I consider this as a safe bet, given that I invest and forget and not worry about the short term downsides of things. I have also taking a slightly risky approach and buying some more Crypto. Yes for me it is risky but given some of the past trends, it makes sense to put some money in alternative investments.
If the market volatility concerns you, I would be cautious as the upward and downward movement in cryptocurrencies can be a little scary. Personally, I feel this is the right time for me to take in some extra risk and invest heavily after which I plan to take out some of the profits and move them into real estate.
(Disclosure: I invest myself in the S&P500, NASDAQ, DOW JONES indexes, Bitcoin and Ethereum. Please review the Disclaimer section prior to any investments.)