Stocks Already Taught You Crypto’s Biggest Lesson

Be Careful, But Don’t Be Afraid [View in browser]( BROUGHT TO YOU BY: Proprietary Data Insights Financial Pros Top Cryptocurrency Searches This Month Rank Name Searches #1 Bitcoin 3,313 #2 Ethereum 947 #3 Algorand 272 #4 Cardano 227 #5 Ripple 184 #ad [Wall St. legend’s biggest prediction in 50 years]( This Doesn’t Look Or Feel Like A Cooling Housing Market You can’t escape the rose-colored headlines, cherry picking some relatively random data (like the 5.9% year-over-year decrease in home sales) to say we’re seeing signs of a cooling market. While there’s a kernel of objective truth in this, it likely means little, if anything helpful to the large swaths of people - on the ground - priced out of buying a home. It’s going to take a ton of cooling off to make things close to affordable again. Housing Data Remains Absolutely Terrifying - Median list price increased 18.2% year-over-year, as of May 28. - That’s 24 weeks in a row of double digit annual increases. - May’s median list price: $447,000. Up 17.6% year-over-year. - At current mortgage interest rates (around 5%), you need $30,000 to $33,000 more income today than you did last year to afford a median priced home. Source: [Realtor.com]( Don’t Hold Your Breath For A Crash Or Even A Meaningful Correction Corelogic expects housing prices to increase another 5.9% between March 2022 and 2023. While that’s technically a cooldown, what does it do for the average person who’s apparently $30,000 short? Basic in-your-head math says not much. Sliver Of Hope Credit to Fortune’s housing scribe, Lance Lambert, for this excellent [graphic](. If you live or are willing to move to an area of the map in red, pink, or purple, you might - eventually - be in luck. For your best chance at - eventually - scoring a bargain, Corelogic offers this handy list.We should point out that these are merely predictions of possible price declines. Our use of the word bargain. Well, that’s just The Juice trying to be optimistic. While it’s difficult to be hopeful about housing affordability, we do think the negativity around cryptocurrency might be a bit overblown. Scroll with us for some investing wisdom. Sponsored [Wall St. legend’s biggest prediction in 50 years]( A strange day is coming to America… A massive and surprising new transition that could soon impact the wealth of thousands of Americans. [Click here to know more]( Cryptocurrency This Doesn’t Look Or Feel Like A Cooling Housing Market Stocks Already Taught You Crypto’s Biggest Lesson Key Takeaways: - Unlike housing, cryptocurrency doesn’t run in a mature market. - The recent crypto crash is scary, yes, but amounts to productive growing pains. - Like you do with all investing, be careful. But don’t be afraid. Whether it was last year or when you still had to call your broker to make a trade, think back to when you first started investing. (If you haven’t started investing, consider this a cautionary tale). We have all done the idiotic math. It feels so unsexy to drop $2,447 (or whatever) for one measly share of Amazon (AMZN). So we make ourselves get all excited about some longshot penny stock. Because you can be a baller and own 244,700 shares of a stock that trades for $0.01. You know what this logic amounts to: A good way to lose $2,447. This psychology hurts quite a few investors, especially early on. It’s also why stock splits can look so attractive. (We’ll cover these later this month in The Juice). Anyhow, the point is this is just one in a line of lessons we all inevitably learn in one of the oldest games on Earth - investing in stocks. It’s No Different With Crypto We treat cryptocurrency differently for two reasons: - It’s (relatively) new. Just 13 years old. - Quite a few people don’t really understand it all that well. When you don’t understand something all that well, it’s easy to write it off. It’s psychologically comfortable. Then, when something bad happens in the area you don’t understand all that well, you pound the table, treating it as validation of your skepticism. We’ve been seeing this a lot this year as crypto crashed. Growing Pains You lost all of your money on a penny stock. Looking back, you should have just bought Amazon. Growing pain. You got caught up in the crypto hype. You were overweight Bitcoin (BTC). You tried (and failed) to hit a ten-bagger homerun with Dogecoin (DOGE). Similar type of growing pain. When that penny stock torched you, you didn’t stop investing altogether. No. You learned a (potentially expensive) lesson. Ultimately, you were better off for it. Should be no different with crypto. Crypto Isn’t Dead It’s just going through its own higher level growing pains. Amid the carnage, we’re still seeing significant inflows into cryptocurrency. Despite the bearish overhang, investors have put $520 million into crypto-backed funds so far in 2022, including $87 million for the week ending, May 27. Bitcoin attracted $69 million, bringing its 2022 total to $369 million. Just like what tends to happen with stocks. Investors see opportunity. They seize it. The Bottom Line: Along with these growing pains, there will come regulation. To some extent, we probably need it, particularly after the recent Luna debacle. Regulation or not, investors should proceed with caution no matter what they’re investing in. You can apply the same lessons you have probably already learned with stocks to cryptocurrency trading and investing. The most important lesson of all - don’t put all your eggs in one basket. Own a diversified portfolio. Ensure you preserve the capital you need for short-term goals such as buying a house (lol) or long-term plans, particularly retirement. 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