Lyn Alden Investment Strategy | Lyn Alden view on Cryptocurrency
Lyn Alden Schwartzer is the founder of Lyn Alden Investment Strategy and an integral contributor to ElliottWaveTrader.net. She is market analyst covering equities and alternative investment asset classes. She provides tens of thousands of investor with professional research of global markets and helps to find opportunities in the market. She had helped many investors to build wealth and reach financial freedom
Today in this article, we will cover Lyn Aden’s investment strategy
Table of Contents
Section 1: Broad market knowledge
To start with investment journey, we should first understand the state of economy we are in right now and one should not restrict his research to local economy, but also study Global economic landscape. To evaluate current turbulence in the economy, we can summarize the study into below subpoints:
Sovereign debt levels
Sovereign debt also refers to as government debt or national debt refers to as total amount the Government owes to its creditors. These creditors can be foreign governments, local or international organizations, financial institutional or can also be common citizens. A sudden rise of sovereign debt can cause increase in money supply in the economy, increasing inflation.
Inflation
As the sovereign debt levels are ever increasing and have touched new historical highs, this have pushed inflation numbers much further than the comfort zone of Federal reserve. This has caused value of currency to degrade and increased prices for goods and services in the market and cost of living have surged, burdening individuals and economies.
Geopolitical Tensions
Geopolitical tensions such as territorial disputes, ideological conflicts, and power struggles between nations have seen an increase and this has caused tension in the global trade, increasing energy prices, decreasing investor confidence, currency Fluctuations and disrupting the supply chain which inflated overall prices
Unprecedented Events
You should emphasize on development of rare events and should be making corrections in your investment portfolio based on such rapid succession of unpredictable events. One should be vigilant and adaptable and adjust their investment strategy whenever necessary. The latest example of such even is pandemic of 2020.
Section 2: Avoid Overcommitment
One of a common trap a new investor falls into is that, they are committed to the positions they don’t fully understand.
An example of this can be an investor who is bullish in commodities asset class and makes a mistake of putting a major proportion of his portfolio into one asset class. Commodities as an asset class is highly volatile and risky asset class, such over commitment into this position can lead to excessive loss and in worst case scenario can eradicate his capital.
The solution for this is not to get over committed and emotionally attached to a position. Rather implement diversification strategies in your portfolio and spread the risk across wide range of asset classes. If you are emotionally attached to a stock then in this case you will be biased for that asset class and ignore any red-flags for the same. If in future the said asset class experience heavy downside, then you can potentially lose your entire portfolio.
Section 3: Diversification
Diversification is the strategy that Lyn Alden strongly believes in. If you maintain a well-diversified portfolio then you can manage any risk what can affect your portfolio.
Diversification means, investing in a mix of asset classes and not just be limited to traditional instruments such as stocks.
For instances, a well-diversified portfolio might include Stocks, Bonds, Mutual Funds, Real estate and new age investment instruments such as cryptocurrencies. Such a diversified portfolio will reduce the overall portfolio risk and reduces the risk of an underperforming asset class dragging down the returns on entire portfolio.
One should always remember to not put all your eggs in one place rather spread your eggs in different baskets. This approach will help you mitigate the potential downside risk from just one asset class. A loss in one asset class cab be balanced by gains from other asset class, providing more balanced and less volatile investment strategy
Section 4: Underperforming Sectors
One of the best investment strategies followed by Lyn Alden is the consideration of sectors or asset classes which have underperformed in the last decade. Such sectors are often overlooked by market analysts and institutions, and thus might not have much demand in market currently.
However, there are higher chances that this sector is undervalued and might provide you with better opportunity of investing in the asset class at lower valuations.
Lyn Alden has done her research and points out opportunity in the sectors like Metals and energy sector. The reasoning behind such selections is that, we can witness supply constraints and demand for the same is on a constant rise. We can also see the demand for electric vehicles and green energy solutions is increasing day-by-day and this will have direct impact on demand for its raw materials such as copper. For instance, it is expected that copper demand for 2023 will be 1 million metric tons which will increase to 2.8 million by 2030. This presents with an opportunity for an investor to invest and bet on the future.
Investing in such upcoming sectors can yield better and sustainable returns in a long run.
Section 5: New age investment, Cryptocurrencies
Under-subscribed
Lyn Alden has a strong opinion and is bullish on Bitcoins. She has a opinion that Bitcoin is an under allocated asset, which there is lack of awareness among the investors and there is lot of upside in this asset class.
The recent fall in cryptocurrencies is due to recent bear market environment and investors are more risk-averse and avoids high risk investments such as Cryptocurrencies.
Fractional Investments
A common misconception with Bitcoin is that, the nominal price is considerably very high per coin/unit. However, one should know that fractional investing is possible when purchase in Bitcoin. Bitcoin coins can be divisible into the smallest units and the unit is called as Satoshi. 1 Satoshi = 0.00000001 Bitcoin.
Such Fractional Investments ensures that investor can invest in this asset even with a small amount enabling them to wide range of investors irrespective of their investment amount.
Limited Supply
Lyn Alden’s positive outlook on Bitcoin is due to its fundamental characteristics that Bitcoin has limited supply in market. Bitcoin is capped with the maximum supply of 21 Million Coins, such limited supply helps Bitcoin to be categorized as deflationary asset and scarcity can be experienced in the near future.
Traditional fiat currencies such as US Dollars, GBP, JPY have unlimited supply and its value can be deteriorated with increasing supply, thus Bitcoin’s finite supply is considered as a valuable feature.
Conclusion
In conclusion, Lyn Alden’s investment strategies can serve as a guidance for both the new investor as well as experienced investors. It serves as a guidance in navigating today’s economical dynamics, importance of diversification and adaptability in the journey of financial success. Lyn Alden’s years of experience and unique perspective towards new age investment options helps investors to explore more investment options and start journey towards their financial freedom.
FAQ
Q Lyn Alden’s Net Worth
A: Lyn Alden’s estimated net worth is $4.6 million
Q Lyn Alden’s Website
A: Her official website is https://www.lynalden.com/
