If your strategy only works in certain types of market environments, then it’s probably time for a new strategy.
If you’re unable to adapt to changing market conditions, it’s only a matter of time before it’s all over for you.
Every cycle is different.
I heard something this week that stuck with me:
“Unfortunately some people were not put here to evolve. They are here to remind you what it looks like if you don’t.”
That’s so well said.
Because it’s true.
Take a look around at what’s happened to people who couldn’t adapt. They fell behind. They’re losing.
And they’re usually complaining about it.
Now, take a look around at who’s winning.
Almost to a person, they’ve been able to maneuver through the market and life as the world has evolved – whether it be with technology, on social media, or through market cycles.
“Lots of people reject having even a tiny bit of Bitcoin in their portfolio,” Chicago attorney Joe Carlasare said yesterday, “not because of the asset itself, but because of what it would mean.
“It forces them to question deeply held beliefs about how the world works.” Carlasare handles major commercial litigation matters and is a public proponent and advocate for Bitcoin.
With Bitcoin making new all-time highs and Coinbase Global (COIN) stock hitting new all-time highs, it’s obvious in hindsight how many people missed it.
Good.
Some people evolve. Some people are only here to remind us of what happens if you can’t.
Humans act irrationally, particularly when money and ego are involved.
They enslave themselves to their own insecurities rather than focus on trying to make money.
And that’s the only real goal of investing.
Put the ego down. Keep an open mind.
And give yourself a chance to adapt to the ever-changing times.
You can take your ball and go home if you’d like.
But if you want to play this game, survive, and advance, you must evolve with the market.
This Week in Everybody’s Wrong
On Monday, we talked about a major misconception among the general public and even some investors.
A CEO has one job, and that’s to increase shareholder value.
Here’s what it means to invest based on the way the world really works.
On Tuesday, we took a fresh look at the U.S. Dollar.
We entered 2025 looking for a weaker Dollar – and it’s gotten crushed like never before.
Here’s why we’re thinking about the implications of a stronger Dollar.
On Wednesday, we revisited one of my favorite Charlie Munger quotes and the inspiration for the name of this e-letter.
“Warren, if people weren’t wrong so often, we wouldn’t be so rich!”
Here’s how being just a little less stupid can help you make a lot of money.
On Thursday, we talked about what it means to us when everybody else hates a stock market rally like the one we’re enjoying right now.
Asset prices don’t move on fundamentals; they move based on positioning – or mispositioning,
Here’s why price is the only thing that pays.
On Friday, we explained why Cryptocurrency is just another Tech subsector and Bitcoin is just another stock.
Everybody treats them like they’re some sort of revolutionary asset class.
Here’s why everybody’s wrong about Crypto.
On Saturday, we broke down short interest data, where it comes from, and how we organize it.
More importantly, we talked about how we use it to make better trades.
Here’s how we see the data – and what it means for speculative high-growth stocks.
Have a great Sunday.
I’ll see you Monday morning…
Stay sharp,
JC Parets, CMT
Founder, TrendLabs