Buy Hold Rant
How to mentally survive a 10% portfolio crash and why gratitude helps
10/16/2025, 5:30:11 PM
Economic Summary
- Crypto-driven volatility caused the speaker's portfolio to fall roughly 3.5–4% overall, with a peak drawdown near 10%, showing how crypto exposure can create sharp portfolio swings.
- Repeated 10% losses compound severely: ten consecutive 10% declines would effectively reduce a portfolio to near zero, underscoring both mathematical risk and intense investor psychology pressure.
- The speaker is responding by increasing cash reserves and making selective purchases during the dip, signaling a defensive liquidity strategy to capitalize on market dislocations.
Bullish
- Buying during dips offers attractive entry points.
- Building cash provides optionality to buy sell-offs.
- Selective purchases on pullbacks can improve long-term returns.
Bearish
- Crypto volatility can trigger sudden double-digit drawdowns.
- Multiple 10% declines can mathematically wipe portfolios.
- Psychological stress from large losses can prompt poor decisions.