Crypto & Stock Market Investor, HarvardX Graduate, Senior Consultant
Year after year the 4th quarter of the Market cycle is an exciting time for investors. First, it's the end of the year, companies want to post good earnings and strong stock prices in Q4 heading into the new year.
On top of that, "FOMO" is at an all time high in the Crypto sector and nobody wants to get left behind. Essentially, there will be new lows and higher highs as time goes by.
Of course the Markets will run into a bear season along the course but Q4 is built for gains.
Historically, Q4 of any year is the strongest, gaining 3.8% in price since 1945 and rising 77% of the time.
What’s more, this seasonal strength persisted during mid-term election years, when the 500 recorded an average gain of 3.1% in October, followed by advances of 2.4% and 2.1% for November and December, respectively.
In addition, all sectors posted price increases, led by Information Technology (up an average 6.6% since 1990 with a 54% frequency of beating the S&P 500), and Consumer Discretionary, with a gain of 6.2% (and 67% frequency of outperformance)
As a long term investor, Q4 is just another quarter. However, it's always nice to see your investments mature as the year comes to a close.
Cryptocurrencies I'm Holding
ETH: Ethereum has proven to be a strong asset to the growth of digital currency over time. ethereum has soared over 600% in the past 12 months. The ethereum price boost, pushing ether tokens towards $3,000, has caused the combined crypto market to climb to almost $1.7 trillion, up from recent lows of $1.2 trillion in July. The NFT (non-fungible token) has been a digital art gallery from my perspective which can transition into assets in near future and has Sales volumes recorded on the largest NFT trading platform, OpenSea, have hit $1.9 billion so far this month.One NFT sold for $69 Million. The entire NFT space is owned solely by Ethereum Blockchain. With digital wallets becoming more accessible to the public and government officials question why we don't use Crypto as the "New gold standard" the potential revenue growth seems to be uncapped as we begin Q4.
DOGE: When Dogecoin goes on a run if you have a decent average cost within 5-10 cents you will be pleased with the return. In short term Dogecoin can require more patience and the right buy in strategy to keep up with the coin cost prior to a big run. In other words, averaging into your position has brought successful returns for DOGE investors. Dogecoin is more than the hype. From a long term perspective Doge is up 12,600% over the last 12 months. Due to that explosive growth and it only being priced at around .20 cents it makes a good case for strong Q4 investment.
The First 500 Days ($65,000,000)
The First Twitter Tweet (2,900,000)
Forever Rose (1,000,000)
NFTs Are a Catalyst For Ethereum Growth In Q4
The global NFT market is a $370 Billion market according to Nasdaq.com. The first NFT was created in 2014 and has grown significantly ever since. End of month sales in August reached $1.9 Billion.
Since NFTs are purchased through Ethereum blockchain, creators of NFTs and buyers of NFTs purchase and create them using Ethereum. This translates into more people getting Crypto or ethereum wallets to conduct their transactions. Hence, increasing growth through Q4.
Investors Bullish For Q4 but fear Covid Spike
Wall Street investors are bullish for Q4 but a survey conducted by CNBC shows 60% of investors are concerned about another Covid wave.
In my opinion there won't be another significant spike in covid cases. Especially with more and more of the population getting vaccinated. Plus, the majority of Wall Street said that the Technology sector is projected to Strive in 2022. So while Covid may be a concern, spaces like Tech and Crypto can really gain more steam and carry the markets to new All-time highs despite pandemic scares. Therefore, all indications point towards another historical Q4 in 2021.