Gaurav Bansode

August 30, 2025

Chasing momentum

I see a lot of young impressionable retail investors getting suckered into Bitcoin and Ethereum again. Sure, they have soared over the past 5 years, but please don't pour all your savings into them. I believe most of the short term gains have been made already. These may precipitously tank and may not recover for 3 to 5 years. Look at the volatility and see if you can stomach that. What if something else becomes super ‘cool and trendy’  after 5 years? You may never recover your money. A few years ago, we had this cannabis related hype, and those investments have never recovered. Before that, there were genetic stocks for a small period of time. Nothing is wrong with chasing momentum with a small chunk of your money, but it shouldn't be more than what you are willing to lose. And you should not lose sight of the fact that you are chasing momentum and not true fundamentals. 

If you are looking for some negative correlation to the US market I could have pointed you to gold but there has been a more than usual bull run since the beginning of the year. May be its time to take some gains or just time to hold on to cash 🏧  in the short term.


Disclaimer — Not to be construed as financial advice. I assume no liability for losses incurred as a part of your investing process. I recommend you seek advice from an actual professional advisor before investing. I do not work in finance. I am just an enthusiast with an interest in money management and all my opinions are for informational purposes only.