Financial Crisis and Safe Havens

[Pursuer]

A safe haven investment is undoubtedly gold/precious metal, coz you looking for safe haven it should be safe. Bitcoin has high volatility, it's good for profitable/long term investment, not for saving investment. However i think your percentage are suited for you, 30:70. you (and me too) are still young, better to make huge money before we get old

it is just that bitcoin is young! and infant even.
we can not really expect something this young and small to become as big as something like gold which has been around for a very long time, ever since people were still riding horses around!!
it can not yet be a safe haven, but it is a very profitable investment exactly because of that. the volatility only shows the size of the market, the rise shows the adoption and the non stop rise for years shows the adoption doesn't want to stop any time soon.

[1Referee]

Bitcoin has high volatility, it's good for profitable/long term investment, not for saving investment.

You are contradicting yourself with nonsensical terms. Yes, the market is indeed volatile, but if we look at how much volatility we have gone through throughout the years, does something pop up that catches your attention? Probably not. It's the fact that regardless of how much volatility we have gone through in all previous years, it didn't had a single bit of effect on the market at all. It allows Bitcoin perfectly to be utilized as store of value/wealth (safe haven asset), and if you think that's not the case, you're delusional. It's not for nothing that Bitcoin has been the best performing asset and investment option for years now, and this will stretch out to the forthcoming years as well.

[JohnBitCo]

Hi guys,
I could really need some external advice on investments and would be happy if you would share your thought.

First let me explain my current sitation. At the moment I'm still a student but I work a lot in addition to my studies. Therefore I have about 500$-1000$ each month to invest.
I'm really a big fan of investing and especially diversification. My dream porfolio would be about 15-20% precious metals, 20-30% Cryptocurrencies, 20% real estate and 30-45% stocks and bonds.


So at the moment I don't have the financial possibilities to afford any real estate cause prices are much too high in my country. Which leaves me with the other 3 asset classes. We also know that statisticly there is a financial crisis ever 8-10 years. Keeping in mind that the last one happened in 2008 there won't be much time left to profit of the stock market (I know the Dow is doing well right know and there are no signs for a crisis).

Considering the stuff I told you by now my strategy is to focus only on "safe haven investments". Which means a portfolio of 10%-30% precious metals and 70%-90% Crypto. Once a financial crisis happens it's time to diversify and buy stocks (mostly ETFs).


Do you think this strategy makes sense or would you recomend me to invest fully diversified right from the beginning?  

Thanks for wour help and opintions  

Ok, this is tricky.  Do not invest and count on returns anywhere, they are not a guarantee and not even that easy to predict.  I don't know what the deal is there, but you should probably speak with a financial planner.  Make sure that whatever you do, that you have a serious savings plan and not putting it all out there where it can be lost.  

[FrueGreads]

I'm slowly getting in the investment world as well, but from what I've been reading and seeing, I would say that it looks like a good strategy. It's always good to keep your investments diversed in case something goes wrong, so I would spread investment funds on gold (I don't think the other precious metals are really worth it) and crypto. As for crypto, I would keep most of it in bitcoin, maybe 75 to 85%, and put the rest in some alts, because not all alts are bad. There are some solid ones out there, that should live alongside with BTC. I would then just hold all of these and not trade them.
These are precious assets, I don't think you want to be playing around with them, unless you really know what you are doing.

Also I heard we should see bitcoin ETFs very soon. Once it happens, a lot of money will go into crypto, and hopefully all the bubble fear will go away.

[Gozie51]

Hi guys,
I could really need some external advice on investments and would be happy if you would share your thought.

First let me explain my current sitation. At the moment I'm still a student but I work a lot in addition to my studies. Therefore I have about 500$-1000$ each month to invest.
I'm really a big fan of investing and especially diversification. My dream porfolio would be about 15-20% precious metals, 20-30% Cryptocurrencies, 20% real estate and 30-45% stocks and bonds.


So at the moment I don't have the financial possibilities to afford any real estate cause prices are much too high in my country. Which leaves me with the other 3 asset classes. We also know that statisticly there is a financial crisis ever 8-10 years. Keeping in mind that the last one happened in 2008 there won't be much time left to profit of the stock market (I know the Dow is doing well right know and there are no signs for a crisis).

Considering the stuff I told you by now my strategy is to focus only on "safe haven investments". Which means a portfolio of 10%-30% precious metals and 70%-90% Crypto. Once a financial crisis happens it's time to diversify and buy stocks (mostly ETFs).


Do you think this strategy makes sense or would you recomend me to invest fully diversified right from the beginning?  

Thanks for wour help and opintions  

Ok, this is tricky.  Do not invest and count on returns anywhere, they are not a guarantee and not even that easy to predict.  I don't know what the deal is there, but you should probably speak with a financial planner.  Make sure that whatever you do, that you have a serious savings plan and not putting it all out there where it can be lost.  

Investing and expecting an instant returns could frustrate one. Six months interval is ok to start expecting profits from the investment and before this time, you are to continue to build the business either by paying salaries or in the case of cryptos - checking on the exchange and its growth. Basically, immediate expectations of profit is usually a wrong way to go. Investing in promising altcoin is good too.

[wxa7115]

Thanks for you input guys. You mentioned some really good points.  


To explain some of my desicions here are some of my view points:

snip

Your strategy is fine, it could be a good idea to add some stocks anyway just in case they do fine for more time than you think but for the most part your strategy seems solid however since you are trying to find a safe haven from the next economic crisis then I think it makes more sense to invest more on precious metals, the percentages that you give seems better suited for someone that is an investor.

Maybe I should focus on crypto now and stack up my precious metals over time. Because now it's unlikely that there will be a crisis soon but as years go by the possiblity will be higher.

As long as you are comfortable with your strategy that is fine, it seems you want to get some profits now, especially since bitcoin is really hot at the moment and it is not giving any signs that is going to calm down, and then you can consolidate your profits by changing the percentages between gold and crypto, that is a nice strategy and one that is very common among brokers, when young people invest with them they recommend them to take make a portfolio with a greater risk and then later in life they make surer and surer investments to preserve the capital they have won.

[Nerman]

First i would like to salute you for being financially aware.  It is great that you are thinking of investing because when i was a college student i only think of clubbing and partying. Anyways as you mention real estate is not yet possible so go put it in cryptocurrency. You may also put it in VUF or bonds although the ROI is small the risk is very little.

[Fuhre]

I am in a similar position as you right now. But I'm probably going to be investing more into crypto rather than precious metals, I believe there is more potential going forward.
Ultimately there will be a financial crash but the question is when it will happen. I don't know how you are so certain that it will happen in 8-10 years. I don't know either but it may be coming our way sooner than expected. After I will be looking to buy some cheap real estate.

No one will ever know when the accident occurred, I think he is very confident that can say 8-10 years. But I know that an accident will happen if it really is a world economic crisis. I may think a little too much, but I also do not know when it will happen. Very difficult if only seen from the speculation over what happened.

[wxa7115]

A safe haven investment is undoubtedly gold/precious metal, coz you looking for safe haven it should be safe. Bitcoin has high volatility, it's good for profitable/long term investment, not for saving investment. However i think your percentage are suited for you, 30:70. you (and me too) are still young, better to make huge money before we get old

it is just that bitcoin is young! and infant even.
we can not really expect something this young and small to become as big as something like gold which has been around for a very long time, ever since people were still riding horses around!!
it can not yet be a safe haven, but it is a very profitable investment exactly because of that. the volatility only shows the size of the market, the rise shows the adoption and the non stop rise for years shows the adoption doesn't want to stop any time soon.

True but at the same time why we would want that to happen right now, I do not have a lot of bitcoin, I do not want bitcoin to become that big that fast, if instead it took many years then I will have the time to get a lot of bitcoin before that happens and the amount of money that I will get after that happens will be enough to make a millionaire, so if bitcoin needs many years to reach the market cap of gold that is not something that I mind at all.

[wxa7115]

First i would like to salute you for being financially aware.  It is great that you are thinking of investing because when i was a college student i only think of clubbing and partying. Anyways as you mention real estate is not yet possible so go put it in cryptocurrency. You may also put it in VUF or bonds although the ROI is small the risk is very little.

I think most people are like that, I remember that when I was young I did not cared about my health and now that I’m a little bit older I care a lot more about the future and the same it is true with money, in my youth I did not cared about where I spent my money but now I have a very strict budget and I adhere to it since I want to have a better life and I think bitcoin is going to be a key to my future.

[reflector]

First i would like to salute you for being financially aware.  It is great that you are thinking of investing because when i was a college student i only think of clubbing and partying. Anyways as you mention real estate is not yet possible so go put it in cryptocurrency. You may also put it in VUF or bonds although the ROI is small the risk is very little.

I think most people are like that, I remember that when I was young I did not cared about my health and now that I’m a little bit older I care a lot more about the future and the same it is true with money, in my youth I did not cared about where I spent my money but now I have a very strict budget and I adhere to it since I want to have a better life and I think bitcoin is going to be a key to my future.

Try to have open view with the bitcoin related platforms, you will be able get into any project or business with the related platform. That will take you to heights and you may become millionaire as well.
If you still work in your day job apart from bitcoin related services means invest some fund and purchase bitcoins as much you can. I am sure that value will reached double the value in some months.

[taxmanmt5]

A foundation is built on strong materials, not on materials that you hope are strong or that are promised to be strong, it is your future that will collapse if it all goes wrong.

[cryptogeek101]

Hi guys,
I could really need some external advice on investments and would be happy if you would share your thought.

First let me explain my current sitation. At the moment I'm still a student but I work a lot in addition to my studies. Therefore I have about 500$-1000$ each month to invest.
I'm really a big fan of investing and especially diversification. My dream porfolio would be about 15-20% precious metals, 20-30% Cryptocurrencies, 20% real estate and 30-45% stocks and bonds.


So at the moment I don't have the financial possibilities to afford any real estate cause prices are much too high in my country. Which leaves me with the other 3 asset classes. We also know that statisticly there is a financial crisis ever 8-10 years. Keeping in mind that the last one happened in 2008 there won't be much time left to profit of the stock market (I know the Dow is doing well right know and there are no signs for a crisis).

Considering the stuff I told you by now my strategy is to focus only on "safe haven investments". Which means a portfolio of 10%-30% precious metals and 70%-90% Crypto. Once a financial crisis happens it's time to diversify and buy stocks (mostly ETFs).


Do you think this strategy makes sense or would you recomend me to invest fully diversified right from the beginning?  



Thanks for wour help and opintions  

There is no general strategy especially in the business of investment. Your safe haven investments can be another person's hell fire investments. Apply your own strategy if you have done your mathematical calculations very well. Remember to apply the diversification theory in your decision.
That will reduce your risk level during crisis. Thanks

[BelCanto]

Before I say anything I'd like to point out that you're in college so you've got time on your side. . . which is to say if you blow it up you have plenty of time to make it back.   Also, kudos on having 500-1k per month to invest.  Most college kids I meet can't even afford a burrito at the end of the month.

Onto your questions:

Before I start, this is not investment advice and should not be construed as such.  Any purchases you make are on you as are any profits or losses.  

Gold is a good asset but you have to be careful purchasing it.  Physical metals are unregulated and often sell for ridiculous premiums (read 50%+).  The worst I know is a site that marks up their metals 400% and through some shifty marketing gets away with it.  If you go physica0,l stick to bullion and don't pay more than 3% over spot.  If you're in the US and need help with this let me know.  If you're outside the US just remember,  no more than 3% over spot.  Ever.

Real estate-  yeah, that's a tough one.  Aside from the necessary capital you'll need to know what to look for and where.  I know people in real estate and it's a heckuva learning curve from what I've seen.

Equities- well an old school trader one said to me "The stock market was designed to create wealth and the forex market was designed to take it back"  Obviously I mention this for the first part.  Having the right stocks is essential.   If you know how to pick stocks, cool.  If not, I'd ask for help.

Crypto-  not sure I'd call it a safe haven asset yet, although it has a similar function to gold and is easier to use when transacting business than the barbarous relic. I love crypto, but I still don't recommend anyone put in any amount they don't want to lose.   It's probably the highest risk of everything on your list.  That being said, it's your money so it's your decision.

Regardless of what you do I'd stress test the portfolio. (EDIT: If you need help with this too, I can probably run one for you)

Let me know if I can be of further assistance.  

[Aleister Crowley]

Please do all by yourself. It is better to understand everything by yourself and do it personally rather than depending on someone else for your investment. No one is going to be worried about your investment else than you.
There are many website services that offers trading tips and recommend you the alts to invest in it, but still it is your money and you should hold yourself responsible for it.

investing and trading on your own is the best option in my opinion ,, because from there you can start reading the market and will begin to understand the price movement rather than rely on others .. kija find a little confusion you can ask the people who understand .. because all the disina Your confusion can be answered quickly ..

[Qunenin]

A safe haven investment is undoubtedly gold/precious metal, coz you looking for safe haven it should be safe. Bitcoin has high volatility, it's good for profitable/long term investment, not for saving investment. However i think your percentage are suited for you, 30:70. you (and me too) are still young, better to make huge money before we get old

Nothing is safe and nothing is totally risky. A good approach is to use the mind and take responsible measures to get good results in trade
or whatever the financial thing one is involved.