Dealing with a bear market is hard work. Downward trajectories are no excuse to leave the ball, and here’s what you can do to prepare for the inevitable return of the bulls.
When I wrote about what to do when the inevitable crypto winter blew over us, I had no idea that bitcoin’s crash was so imminent. I had even less idea that it would be accompanied by a fiery bear market that sent yield expectations deep into the red across the board.
If short selling and defensive hedging aren’t your thing, bear markets offer little to do other than wait for the headwinds to die down. This, in turn, leaves many anxious hands burnt out playing finicky instruments like VIX (don’t we all…) or left too idle for their owner’s comfort.
If you’re tired of hiding, I have great news: there’s never been a better time to dive into fintech and keep up with the hottest industry trends like (de)commodification. data, radical automation and independent consulting services.
Here is my free program for anyone who wants to make the most of downtime.
Class 1: Blink and you’ll miss it – the rise of independent consulting and radical automation
As the fintech industry matures, we see more and more sophisticated products and platforms coming to market.
While machine learning and AI are by no means new to portfolio management, truly scalable portfolio personalization and intelligent AI concierge platforms that select instead of just indexing are rare.
However, the area is growing rapidly and now is the time to catch the train before it leaves the station.
If you’re looking for a starting point, you can check out Vise, which has been around since 2016 and offers automated investment customization management for financial advisors. Brooklyn Investment Group is a new entrant to the market, but its bespoke AI platform is already making the right kind of waves.
The same goes for Q.ai, an AI-powered investment app that also gives you its opinion on Forbes.
Once you’re done with the demos, it’s time to get down to your first homework of the day and see how the sausage is really made.
If you’re up for the challenge, Udemy has courses like the AI Stock Trading System Course and AI Automated Investing Using Robo Advisors that will get you up and running. discuss in a few days and downright dangerous with the underlying technology at the end of the course.
Code at your own risk – you might end up loving it.
Lesson 2: Refreshing Industry Trends: DeFi and ESG Investing
By now you should already be familiar with DeFi and what all those alternative coins, monkey-faced NFTs, and smart contracts are all about. If not, I strongly recommend that you take, for example, the ex-ed course Economics of Blockchain and Digital Assets from MIT which starts in October.
Another inescapable trend of our time is the recently renewed intellectual feud between profit and the planet, previously played out by Friedman and Freeman.
As of today, opposing corners are now represented by Larry Fink and Vivek Ramaswamy and the fight is shaping up to be entertaining.
Your required reading includes Larry Fink’s letter to CEOs from 2022, Woke Inc, as well as the former Friedman vs. Freeman debate at the Institute for Corporate Ethic’s Business Roundtable. Enjoy!
Class 3: Next big bet: the (de)commodification of data
A few years ago, every lawyer and his uncle cared about data privacy, and for good reason. The legal side of the industry has matured to a point where even certification bodies and auditors are well fed, but on the financial side things remain in an exciting state of flux.
The big industry trend here is the (de)commodification of data, and what you should really keep an eye on is end-user empowerment and access to retail data marketplaces.
As general sentiment on data privacy tightens, the jig is nearly complete for Facebook and co. who have successfully hoarded end-user data without providing user-accessible control and marketing methods.
Given the saliva-inducing size of the relevant markets, you can bet your bottom dollar that countless future graduate school dropouts are coding in hopes of becoming the go-to platform for end users to commercialize their data. .
For extra credit, be sure to keep up to date with recent developments in data privacy and fintech, and consider what solutions lie just behind adjacent possibilities. A+ for anyone creating a MeetUp group to strategize and share ideas.
Let me know once your starting lap begins so we can all join in the race, and whatever you do, remember not to just stand on the sidelines.