In today’s Exponential Investor

  • Our last link to the 1980s
  • Five things you need to know
  • BTFD?

Today is the big day!

Today we’re live with our all new Exponential Investor website and emails.

If you haven’t yet had a good look around the website then get stuck in, what are you waiting for?

For me, it’s a massive change and one that I’m very excited by.

After all the new site…

… is a damn sight better than…

I hope you agree and that you like what we’ve been able to do.

As our publisher, Paolo Cabrelli noted (sarcastically), “I’ll miss the old site, it was our last link to the 1980s.”

From nine to five

One of the things I think is going to help right away is how we categorise our articles. In the past we had nine different topics that we’d categorise pieces into.

That’s now just five. Nice and simple. And nice and easy to find our work on some of the biggest most important investment areas right now.

Now you’ll find our new categories: Investing, Stocks & Shares, Technology, Crypto and Energy.

Investing is all about how to invest, investment strategies, ways to think about investing, how to manage key aspects of investing such as plans, goals, investor psychology – all critical to becoming a better investor.

Stocks & Shares is more dialled into the specifics. Stocks that you’ll find listed on the London Stock Exchange, or the US markets. Articles where we dissect a particular stock or stocks and explain what makes them interesting and part of a bigger investment idea.

Technology is so broad now that we could have 100 sub-sections. But really when you want to know what the next big tech breakthrough is (AI, quantum computing, robotics and automation, etc) then you’ll find it under Technology.

Crypto and Energy, well they do what they say on the tin! Crypto will have all our expert coverage on the crypto markets. Energy will have all our expertise on the energy markets. These two alone are perhaps the biggest investment ideas that investors should be all over right now.

As I say, it’s all very exciting, very new. We love it, and we hope you do to. Of course, if you think we’ve missed a beat anywhere or you have some suggestions for improvement, make sure to email me and let us know.

I’ll let you know more this week about some of the new functionality and sections you can find on our all-new Exponential Investor website.

BTFD?

What does BTFD mean? Well BTD in investment means to “buy the dip”.

I’ll let you figure out what the “F” might stand for.

It’s an expression of exuberance when investors believe a market to have seen a short-term move down, a dip, while remaining massively undervalued.

To buy the dip or BTFD would be a chance to get more of an asset you believe is going to be worth substantially more in the long term and this “dip” is really just a chance to build on a position, or make new positions in your portfolio.

However, BTFD should also come with a fair element of caution.

When markets dip, it can be for numerous reasons. When individual assets dip, it can also be for a whole load more, other reasons.

You need to understand why the dip occurred in the first place before taking action.

The dip I’m referring to now is the dip in the crypto markets that kicked off on Sunday and has rolled through to Monday.

This dip is what I’d consider to be “heat” coming out of the market.

Over the last week and half, crypto markets have been in full FOMO (“fear of missing out”) mode. Weekly returns of 100%, 200% and in some cases a lot more, were seen across the board.

It was literally like shooting fish in a barrel.

But those conditions in crypto don’t last forever. It peaks and troughs, it pushes and pulls. Excitement kicks in and then profit taking and fear of a real crash kick in.

There’s almost a weird tempo to it that you can predict once it sets in. You know that when everything is up, it’s only a matter of time before it all is down again.

Does that show a sign of further falls to come? Or is it really a BTFD situation?

Well it depends on what you’re looking at and what view you have long term.

If we’re talking about something like bitcoin, then my long view is that we’re talking about a revolution in money and assets that has decades to play out.

But if we’re talking about the meme-crypto, Dogecoin, then you’re probably barking up the wrong tree and are setting up for disappointment.

That’s why when you see a lot of BTFD splattered around, you have to take a step back. Calm the nerves, cool the jets and really look at why this is happening. Also consider what impact it has on the bigger picture for the specific assets you’re considering BTFD with.

Yes, it may be a great chance to top up, add to or get some new positions.

But in some cases it’s the start of a spiral you don’t want to get caught up in. Knowing what’s a BTFD moment and what’s a downwards spiral is key. This week, I’ll be sending you a special briefing that explains that in much more detail and how you can take action to not just BTFD but get ahead of the coming reset.

Regards,

Sam Volkering
Editor, Exponential Investor