NEW All Time Highs! - Post Election Market Discussion

Summary

The speaker discusses their investment strategy in the current market, focusing on long-term holdings with high-conviction assets like Cook, a governance token. They highlight recent price movements, emphasizing the potential for further growth based on factors like total value locked and market conditions. The speaker advises against taking unnecessary risks, particularly through leverage, and instead advocates for holding spot positions to ride out market rallies. They maintain a positive outlook on the broader market, anticipating continued growth and opportunities, especially with favorable political and economic conditions.

Takeaways

• 😀 The speaker believes that the broader market is currently in a bull phase, with significant upward movement in the past week.
• 😀 They emphasize the importance of holding high-conviction tokens rather than actively trading in and out of positions.
• 😀 The speaker is focused on long-term gains and is not looking to take profits on small price fluctuations (e.g., 6-7%).
• 😀 They discuss Cook, a governance token for the Met Protocol, which has experienced impressive growth and could still have more potential.
• 😀 The total value locked (TVL) in the Met Protocol has increased to $1.7 billion, showing strong growth compared to its initial $20 million market cap.
• 😀 The speaker compares Cook’s market cap of $37 million to other staking protocols, believing it can grow even further.
• 😀 The speaker has invested in Cook through their puff NFTs, which provide ongoing yields over time.
• 😀 The broader macroeconomic environment, including rate cuts, liquidity injections, and potential political factors (e.g., a Trump presidency), is expected to support continued market growth.
• 😀 The speaker advises against taking unnecessary risks in a market with steady gains, preferring to hold spot positions over leveraging.
• 😀 They are not putting on leverage unless there is a larger market movement (e.g., a significant flush), preferring to stay with spot and chill during steady growth.
• 😀 The speaker expresses optimism for the market, anticipating more positive weeks ahead and wishes their audience a good day or week.

Q & A

What is the speaker's general approach to investing in the market?

The speaker emphasizes a patient, long-term approach to investing, focusing on holding high-conviction assets without actively trading in and out. They prefer to hold positions and sell only when the market becomes 'really, really crazy'.

What is the significance of the token 'Cook' mentioned in the transcript?

'Cook' is a governance token of the Met Protocol, which has seen substantial growth in both market cap and total value locked (TVL). The speaker sees potential for further growth based on its relative valuation compared to other staking protocols.

How does the speaker assess the growth potential of 'Cook'?

The speaker believes that 'Cook' has significant growth potential, as its market cap has increased from $20 million to $37 million, and it is still undervalued compared to other similar tokens with higher market caps, despite the rise in its TVL.

What role does TVL (Total Value Locked) play in the speaker's analysis of the market?

TVL is one of the factors the speaker considers, though they acknowledge it's not the only metric. The growth of TVL, particularly in protocols like Cook, can indicate success and attract further investment, potentially leading to price increases.

How does the speaker view the current market trend?

The speaker observes that the market is experiencing significant upward movement, with assets appreciating by 5-10% daily. They view this positively, suggesting that it makes no sense to add leverage at the moment since the market is already providing solid returns.

What is the speaker's opinion on the use of leverage in the current market?

The speaker advises against using leverage in the current market, noting that even major altcoins and tokens are experiencing good growth. They believe that holding spot positions is sufficient for generating returns without additional risk.

What macroeconomic factors does the speaker believe could support market growth?

The speaker highlights rate cuts, liquidity injections, and the possibility of a Trump presidency as factors that could support the market. These elements, they believe, could drive further upward momentum in the market.

What does the speaker mean by 'spot and chill'?

'Spot and chill' refers to the speaker's strategy of holding spot positions (i.e., owning assets without leverage) and waiting for long-term growth. It reflects a patient approach to investing, avoiding active trading or taking unnecessary risks.

How does the speaker balance risk and reward in their investment strategy?

The speaker balances risk by focusing on high-conviction tokens and avoiding spreading their bets too thin. They are willing to hold through market fluctuations and only consider selling when they believe the market has reached an extreme point.

Why does the speaker mention waiting before taking profits?

The speaker believes that it doesn't make sense to take profits too early, especially after holding positions through a long period of market consolidation and downturn. They feel that the current market conditions and upcoming factors will support further growth, so they prefer to wait.