![]() ![]() It requires attention to detail and regular monitoring, but you could do it. If you’re interested in detailed analysis, you could make money shorting cryptocurrencies when their prices go down. Those pullbacks are huge opportunities for micro investors to buy in depth, then sell it off when it begins to soar again. In the short-term there might be massive pullbacks, because in a small market that’s so liquid, even small moves can have a big effect on prices. Just to put that into perspective, that’s Jeff Bezos’ Net Worth. However, short timeframes may allow investors to buy a lot of depth.Įarlier in the year, Bitcoin was at a $200 billion market cap. And from a macro perspective, there’s a lot of opportunity in the future. I’m personally bullish when it comes to crypto. Cryptocurrency is yet another arena for this opportunity. In one of the communities that I’m on the board of, I’ve seen investors who are normally bullish with both gold and silver actually make money by shorting them. Are you interested in day-to-day or week-to-week trends, and are good at identifying patterns?.Do you have the patience to position yourself from a macro perspective for a big win?.Are you better at identifying big-picture trends, or analyzing short-term opportunities?.Macro investing may seem like an opportunity for massive gains however, it requires a good knowledge of the warning signs that accompany a crash. While there may be appeal to micro investing because it’s quick, it takes close monitoring of marketing and fast-paced decision making. From a macro perspective, gold is going to go up because of the shenanigans of central banks, yet micro investors don’t need the big picture to make quick gains. Micro investors, who had been diligently tracking the market, were able to make money in a short time frame, even when the price of gold was dropping. Micro investors, on the other hand, seek opportunities to make money in the middle of the cycle, even when gold corrects.įor example, gold went over $2,000 this year, then had a massive correction down to $1,800 or so. Those who bought gold during that time were buying at the bottom of a market. Let’s look at a commodity, like gold, which bottomed out around 2019-2020. They’ll buy and sell in a specified time frame, not worried about the long game. To continue the real estate scenario, a micro investor is more likely to jump into the market at any point in the asset cycle. They gravitate to technical analysis and charting. Micro investors, on the other hand, are more interested in the minutia. This can play out over a couple of years. This is the time these macro investors will be selling off certain properties to prepare. Now, we’re again at what I believe to be the top of the asset cycle. Macro investors can clearly see how the market will play out, and they tend to influence other investors, which directly influences the marketplace. Then, they hold on to those assets while they produce cash flow, maybe buy a bit more, and other investors will follow suit. This knowledge allows a macro investor to come in at the bottom of the market and buy as much real estate as they can. For the United States, it took until 2011-2012 to get the true bottom of the cycle. Then, it’s going to have to run its course at the bottom of the cycle. That’s the time to get out of the market, before it crashes. ![]() 2006 was the top of the asset cycle, and at that stage, the market is overvalued. They’ll use the 2007-2009 housing market as an example. A macro investor is going to examine the whole cycle of a market. They’re looking to history to get clues for how to move forward. In real estate, a macro investor is going to explore the big picture of the markets they invest in. We’ll look at the differences between the two, how investors approach it, and explore the timeframes of each. Today, I want to shed some light on Macro and Micro investing. To do so, I’ve interviewed hundreds of the world’s wealthiest people-investors and financial experts-to get an insider look. That means creating, protecting, and multiplying your wealth. My mission is to help people thrive in any economy. ![]()
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