Listen and subscribe to “Vietnam Innovators” in English: Vietcetera Podcast | Apple Podcasts | Spotify | Google Podcasts | YouTube.
Listen and subscribe to “Vietnam Innovators” in Vietnamese: Vietcetera Podcast | Apple Podcasts | Spotify | Google Podcasts | YouTube.
The term “bear market” has been dominating global headlines lately. But what exactly is a bear market? In very broad terms, it’s when stock prices decline at least 20% from a recent peak. For investors, it can be one of the most unnerving market events you'll encounter. But that shouldn’t stop anyone from investing.
Many would ask during these times is, is it still a good idea to buy in a bear market? Unfortunately, there is no right or wrong answer. As with all forms of investments, there is always a risk, whether the market is bullish or bearish. However, even during times of higher risk, there is still opportunity. If there’s one thing for certain, it is that despite the fear, this isn’t the first bear market, and it certainly won’t be the last; and if history has proven anything, it’s that the markets will recover eventually.
In this episode of Vietnam Innovators, Kavi Saglani, the Senior Vice President for Marketing and Communications for Matrixport, one of the world’s largest and most trusted crypto financial service platforms with $10 billion in assets under management, said the bear market “gives people the opportunity to take a step back, recalibrate their investment strategy and look for opportunities to generate returns from your crypto assets, especially if you already own crypto assets.” Kavi pointed out a few ways how one can take advantage of it:
- For those with crypto assets, now would be an excellent opportunity to shift those assets to platforms where they can generate yield. In simpler terms, yield is the return measure for an investment over a period of time. However, it’s important to note that the rate of return would vary. Ultimately, this could provide those invested to generate a passive income from their investments while still owning the crypto assets.
- “The markets can be very cyclical. Those who have invested since 2018 might remember the last down market. But the markets improved, momentum shifted, and the vast number of crypto assets hit all-time highs in 2021. In the same way, several organizations and companies currently leading the charge in the crypto and digital asset market were born out of the bear markets. It’s when companies look towards innovation to deliver results above all.
- Per Kavi, it’s an opportunity for them (organizations and companies borne out of the bear market) to double down on R&D and create products that have longevity and offer value during these specific times.
- Overall, “with the market being bearish right now, it's a good opportunity for people to actively conduct research, and evaluate where the opportunities lie.”
Kavi acknowledged that was exactly what the vision was when the founders of Matrixport initially created the company, “what they wanted to do and that is unlock and enable yield generation through crypto and digital assets.”
When asked what type of digital asset he holds whenever the market experiences prolonged price declines, Kavi revealed that on a personal level, he’s a Bitcoin maximalist. Most of his crypto holdings are Bitcoin due to the value opportunity. He also bought a few NFTs very early doors from some reputable community groups, which he holds extremely valuable.
To Kavi, crypto and digital assets are long-term investments in value creation. Taking a long-term view makes sense to maintain resilience during the ups and downs of the market, “So whatever crypto assets I have that enable staking, or where I can apply those for additional yield, I absolutely will do.”
Watch the full episode below