Ripple News Update
Every time Ripple prices fall into a slump, I am besieged with messages from terrified investors. The conversation is always the same: “When will XRP prices recover?,” they ask.
“No idea,” I respond. Fundamental investing is tough this way.
Unlike its technical counterpart, it does not hold the promise of certainty. It doesn’t tell you when to invest, because it acknowledges that no amount of indicators can give you a magic eight ball.
Charts are inherently bound by information that’s priced into the market, meaning that external factors (chance, chaos, etc.) make it nearly impossible to “time” your investments. It is a fool’s errand.
Some of the world’s best investors–Warren Buffett, for example–have come to the same conclusion. So rather than watching every uptick or downtick on a daily chart, they act on a mix of the investment’s fundamental properties and the investing climate.
We’ve already established XRP’s fundamental value in dozens of posts. The climate, however, is tenuous. One minute it’s bullish, the next it’s utterly bearish.
In order to navigate this chaos successfully, you have to take a page out of Warren Buffett’s playbook: “Be fearful when others are greedy, and greedy when others are fearful.” It’s Buffett’s most enduring wisdom, not simply because it’s a catchy phrase, but because it happens to be true. It is so obvious that it gets lost in the humdrum of statistics and models.
The basic fact is you want to invest when assets are cheap. But the only time they are cheap is when no one else wants to buy them. Doesn’t that sound an awful lot like the situation we’re currently in? Isn’t XRP trading at fire sale prices?
You have to recognize second chances when they come along.
Back in October, I insisted that Ripple’s fundamentals would carry it from the $0.20 level to $2.00. That prediction came true. And those who were “greedy when others were fearful” made a ton of money. Those who didn’t complained they missed out on an incredible investment.
Now that the latter group have a chance to rewrite history, what do you think they’re doing? They’re still giving into fear! That seems foolish, given recent history.
In any case, we are holding steady on our $10.00 Ripple price prediction for 2018. Try not to overreact to the first quarter blues. There’s still a long way to go this year.