Either the government punish you, or the markets will
Imagine a spectrum like this:
China (regulations) --- US (some regulations) --- Crypto (no regulations)
Some investors argued that China is uninvestible because China regulates too much. Caused so much hurt to the Chinese tech companies and investors lost money because of it.
As for the US, regulations are weaker than in China. The FTC has been trying to break the power of big tech without much success over the years. It allowed the market to celebrate until there is too much excess and optimism built into it. Suddenly it collapsed on its own weight and the market crashes.
Hence it is a case where the government gets you or the market will, eventually. I don't know which is more painful.
Comparing the big tech performances from peak to trough:
China:
Tencent -61%
Alibaba -77%
US:
Apple -20%
Microsoft -26%
Alphabet -26%
Amazon -45%
Meta -56%
China big tech investors seemed to have suffered more than the US counterparts. That said, the crash in US is still unravelling while China has already pledged to stop tech regulation. So more downside risk in US is possible.
How about the wild wild west of crypto? For those who hate regulations and prefer to be in an economy without a central authority?
The two blue chip coins peak-to-trough performance:
Bitcoin -60%
Ethereum -60%
Decentralisation can't save you either.
How about be more conservative by investing in bonds? The peak-to-trough performance of the US government bonds with 20+ years tenure (TLT) was -35%.
Or the recent stablecoin debacle revolving UST? It depegged and lost as much as 70% at one point in time.
This also means that diversification by asset classes couldn't work well at this point.
Everyone applauded the quick Covid market recovery in 2020 and bored-stay-home-investors were making a killing in the markets. In hindsight we know that it was due to a Fed morphine jab that gave life to the markets momentarily. The withdrawal syndrome is keenly felt now.
It is a difficult time to invest. But invest we must. Understand that drawdowns are part and parcel of investing. They happen with or without regulations; centralised or decentralised modus operandi.
China (regulations) --- US (some regulations) --- Crypto (no regulations)
Some investors argued that China is uninvestible because China regulates too much. Caused so much hurt to the Chinese tech companies and investors lost money because of it.
As for the US, regulations are weaker than in China. The FTC has been trying to break the power of big tech without much success over the years. It allowed the market to celebrate until there is too much excess and optimism built into it. Suddenly it collapsed on its own weight and the market crashes.
Hence it is a case where the government gets you or the market will, eventually. I don't know which is more painful.
Comparing the big tech performances from peak to trough:
China:
Tencent -61%
Alibaba -77%
US:
Apple -20%
Microsoft -26%
Alphabet -26%
Amazon -45%
Meta -56%
China big tech investors seemed to have suffered more than the US counterparts. That said, the crash in US is still unravelling while China has already pledged to stop tech regulation. So more downside risk in US is possible.
How about the wild wild west of crypto? For those who hate regulations and prefer to be in an economy without a central authority?
The two blue chip coins peak-to-trough performance:
Bitcoin -60%
Ethereum -60%
Decentralisation can't save you either.
How about be more conservative by investing in bonds? The peak-to-trough performance of the US government bonds with 20+ years tenure (TLT) was -35%.
Or the recent stablecoin debacle revolving UST? It depegged and lost as much as 70% at one point in time.
This also means that diversification by asset classes couldn't work well at this point.
Everyone applauded the quick Covid market recovery in 2020 and bored-stay-home-investors were making a killing in the markets. In hindsight we know that it was due to a Fed morphine jab that gave life to the markets momentarily. The withdrawal syndrome is keenly felt now.
It is a difficult time to invest. But invest we must. Understand that drawdowns are part and parcel of investing. They happen with or without regulations; centralised or decentralised modus operandi.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Limsuhboon : same like: i no need xxx bcuz government xxxx me everyday