Marc De Mesel: Serious Undervaluation = Majority Exposure !

  • Thursday, 28 March 2019 16:14
I've come to realise I made again a big mistake in previous bull market to sell too little at the top. I should have not bought coins middle 2017 with the intend to Buy & Hold forever, for that it was too late as we were already clearly in overvalued territory. Today you can apply this strategy to HODL the coins u buy as we are in clear undervalued territory. Still the hangover I got today made me decide I will not do such strategy in next bull to Buy & Hold Forever as it causes too much gains to evaporate in the bear thereafter. I will continue to keep on eye on prices in next bull, and sell down to minority exposure once we reach clear historical overvaluation, but do not want to waste so much time anymore on following prices as I want to focus on building crypto businesses instead. Typical for a bull is that everyone, me included, expect it to go higher, causing massive missed opportunity to lock in profits. Equally, typical in a bear is that everyone expect it to go lower, missing out to buy really cheap. Therefore respecting simple capital allocation rule to sell down to a minority allocation once there is clear historically high overvaluation is wiser than trying to catch the top. Equally investing big and having already a majority exposure once there is clear historically high undervaluation is smarter than trying to catch the bottom. Today with crypto at $140B while trendline is around $240B means an undervaluation of around -42%. This is clear historically high undervaluation, especially if you take into account that the biggest undervaluation happens at the end of the sideways movement, long after the bottom was found. Therefore a majority exposure to crypto today is the smart move, even when you think odds are highest for a lower low to be found. See also my other video on this "Serious Undervaluation is Here": https://www.youtube.com/watch?v=k9JsmelO12s&list=PLJsRA97ztzdJ6N4ADOIszoSqG01KMaxMv&index=16&t I think Kevin Svenson his estimate of a bottom of $2500 is very realistic for $BTC, a deeper bottom of $80 for ETH and BCH on the other hand I am not so confident about anymore as BTC has much weaker fundamentals as ETH and BCH, having become very expensive and often even unusable everytime there are lots of transactions. A double bottom may well be all that is left to come for great coins. Therefore I will scale up my current exposure of 60% crypto to 80% crypto once BCH reaches $76 and to 100% if BCH would reach $40. Fingers crossed. I will post less videos in the future, and would refer to following channels to continue to stay informed about historical over or undervaluation: https://twitter.com/Awe_andWonder/status/1093756318425468928 https://twitter.com/gravitywave2/status/1108968866950967301

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