Blockchain appears to be a wonderful technology that may eventually yield tremendous economic and societal value. No matter how Bitcoin’s story unfolds, it will be an interesting study in FOMO, markets, and psychology.
In sum, everyone should take a moment to appreciate 2017 and pat themselves on the back. As always, the world offered many causes for concern. You overcame skepticism, remained disciplined, and profited.
On occasion, a record will pivot to a steep decline (1987, 2000, 2007). However, relative to the frequency of highs, steep slides are rare. Selling stocks upon a new high is much likelier to mean foregone gain than foregone pain.
Bay Area natives have vivid memories of the tech bubble that burst in 2000. With mind-boggling house prices, cranes overtaking the S.F. skyline, and traffic popping up at any hour anywhere, it’s natural to wonder whether we’re reliving the turn of the century.
In 2016 and especially in 2015, a strengthening dollar detracted from U.S. investors’ international stock returns. This year, the opposite has happened. Historically, during periods when international stocks outperform U.S. stocks, a weakening dollar has been a major driver of returns.