You Started with Digits… Do You Still Own Digits?
01 Nov 2018
Our company President, Jeff Johnston, and I received a phone call last week during our radio show from Bill in Wisconsin that went something like this, “Hi guys, it’s up 800%… what do you think about BitCoin?” Jeff’s response was his usual reply, “Thanks for listening Bill, it’s not good or bad, it depends on how much of it you own compared to your total portfolio, your concentration limit.”
Jeff immediately started to refer to his “Apocalypse Du Jour list” after the caller hung up. This list includes bad events that have occurred each year that could have “caused great fear or nervousness, frighten or scare people out of investing for the long-term.” Jeff and I were thinking the same thing about BitCoin; will the collapse of BitCoin be on our Apocalypse Du Jour list some day? Here’s a look at Jeff’s list so far:
– Global Warming
– Black Monday
– Asian Flu
– Mad Cow Disease
– 2012 (Mayans Predict ‘The End’)
– Fiscal Cliff
– Debt Downgrade
– Enron, Worldcom, Lehman Brothers
– Presidential Election
– Oil Correction
– Rising Interest Rates
My favorite on the list: Black Monday, October 19, 1987. When the blue-chip stocks that made up the Dow Jones lost 22.62% of their value, easily topping the 12.82% decline of October 28, 1929, during the great depression. The collapse wiped out more than $500 billion worth of market wealth at the time; the Dow Jones lost 508 points and finished at 1,738.74.
Sam Walton, believed to be the nation’s richest man at the time, was asked if he was upset about his personal holdings dropping more than a $1billion in value in a single day, replied: “It was paper when we started out, and it’s paper afterword.” Of course, Sam never sold his stock, and America went back to work. Thirty years after Black Monday, the Dow Jones hit an all-time high of 23,000, for the first time ever. If there ever is a collapse in the BitCoin, do you still own digits?