This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

In some ways, things are starting to look up for the U.S. economy. A promising inflation report and low unemployment have many people feeling optimistic that perhaps the worst of this downturn is over.

However, many Americans are still feeling the pinch, and a potential recession is still on the table. To be clear, we’re not officially in a recession just yet. The National Bureau of Economic Research, the organization responsible for making that decision, hasn’t made the official call so far.

Whether or not we’ll face a recession later this year is uncertain. But if there’s anyone who knows how to survive economic downturns, it’s famed investor Warren Buffett. Here’s his advice for getting through a recession.

1. Keep a long-term outlook

Nobody knows for certain whether a recession is looming or how long it might last if it hits. But we do know that, over the long run, the economy and the stock market will recover.

Short-term volatility is normal, and there is a possibility that the economy could slow and stock prices might sink over the next few months. If that happens, your investments could lose value in the near term. However, even the worst recessions are only temporary, and things will get better over time.

Back in 2008, at the height of the Great Recession, Warren Buffett wrote an opinion piece for The New York Times. He explained that amid the recession, “businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records five, 10, and 20 years from now.”

2. Invest more

It can be daunting to continue investing when the future is uncertain, but right now is one of the best opportunities to buy more.

While the market has been rebounding in recent weeks, stock prices, in general, are still well below their peaks from earlier this year. That means you have the chance to load up on quality stocks at a discount — which can potentially save you a lot of money over time.

This strategy can also be incredibly profitable. When you invest during economic slumps, you’re setting yourself up for significant returns when the market recovers. For example, in March 2009, the S&P 500 hit its low point during the Great Recession. But in the following year alone, it saw returns of nearly 70%.

^SPX data by YCharts.

According to Buffett, an important rule to remember when investing is to “be fearful when others are greedy, and be greedy when others are fearful.” If we face a full-blown recession and stock prices fall further, that is your opportunity to “be greedy” and invest as much as you can afford.

3. Focus on quality investments

The best way to ensure your investments survive a recession is to fill your portfolio with strong, long-term stocks. Not all businesses will make it through tough economic times, but healthy companies have the best chance of experiencing consistent growth despite volatility.

This is especially important to remember when stock prices are lower. It can be tempting sometimes to buy shaky stocks simply because they’re on sale. But a bad investment is still a bad investment even if it’s affordable. You’re better off sticking to quality stocks that are more likely to rebound from slumps. As Buffett says, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Nobody can say exactly how the market or the economy will perform over the coming months, and there’s still a chance that we could face an official recession. No matter what happens, though, the right strategy (and the right investments) can keep your money as safe as possible.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 tips for surviving a recession, according to Warren Buffett appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares trading ex-dividend today
• Janison share price slides as net loss after tax falls by triple digits
• Why these ASX lithium shares are outperforming the market today
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Motley Fool contributor Cat Lindsay has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Janison Education Group Ltd (ASX: JAN) share price is in negative territory today.

This comes after the educational technology company released its full-year results for the 2022 financial year.

At the time of writing, Janison shares are trading 1.18% lower to 42 cents each. The S&P/ASX 200 Index (ASX: XJO) is also down 0.75% so far today.

Let’s check the company’s latest results.

Janison share price backtracks as company records widening net loss

Janison delivered its FY 2022 results for the 12 months ended 30 June 2022. Here are some of the key takeaways:

• Total group revenue up 20% to $36.3 million
• Gross margin up 9 percentage points to 64% (gross profit of $23 million)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) down 37% to $1.9 million
• Net loss after tax up 181% to $9.1 million
• $11.8 million cash on hand

What happened to Janison in FY 2022?

In FY 2022, Janison delivered a sound year with 20% revenue growth year-on-year driven by Janison Solutions and Janison Assessments. Both business units contributed of $23.9 million (+4%) and $12.4 million (+72%), respectively.

Janison also delivered further gains in gross profit of 39% to approximately $23.2 million in FY22. This was underpinned by an enhanced customer mix as well as improved pricing and scale benefits.

Operating costs increased by 56% to roughly $21.4 million. The majority of these costs came from investment in enterprise sales and marketing resources for large enterprise procurement opportunities.

Overall, the company registered a net loss of $9.1 million on the back of depreciation and amortisation expenses. This reflects an increase of 181% from the $3.2 million loss incurred in FY 2021.

What’s ahead for Janison in FY 2023?

Looking ahead, Janison expects sales momentum and revenue growth to continue in FY 2023.

The group delivered $1.4 million in positive operating cash flow in FY 2022 and is targeting positive net cash flow this year.

For the first half of FY 2023, income from the International Competitions and Assessments for Schools (ICAS) segment is expected to be 15% higher with around $6.5 million in net revenue.

In addition, two new major platform deals secured in Q4 FY 2022 have an aggregate revenue of $1-2 million annual recurring revenue.

Janison also said that it is well positioned to take advantage of Program for International Student Assessment (PISA) opportunities in the United States and United Kingdom in FY 2023.

The Janison share price is down almost 70% since the start of 2022.

The post Janison share price slides as net loss after tax falls by triple digits appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Janison Education Group Limited. The Motley Fool Australia has positions in and has recommended Janison Education Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Whitehaven Coal Ltd (ASX: WHC) share price is going from strength to strength.

Whitehaven shares closed on Friday trading for $7.36, which set a new closing high on the day. Shares are currently trading for $7.53, up 2.3% even as the S&P/ASX 200 Index (ASX: XJO) dips 0.8% lower.

If the Whitehaven share price can hold onto its gains, it will close out the day for yet another new record high.

What’s piquing ASX 200 investor interest?

ASX 200 investors have been bidding up the Whitehaven share price amid soaring global demand for coal. Demand that has seen coal prices break into their own all-time high territory.

According to Trading Economics, Newcastle coal futures are currently trading at US$416 per tonne. To give you some idea of just how pricey that is, and how profitable it is to companies like Whitehaven, on 1 January this year that same tonne of coal was priced at US$130.

Coal prices, alongside oil and gas, had already been tracking higher heading into 2022 as the world reopened from its lengthy pandemic slowdown. Rising demand was met with limited new supply, following years of underinvestment in the carbon-intensive sector.

Coal prices, and the Whitehaven share price, received another push higher following Russia’s invasion of Ukraine amid direct disruptions from the war alongside ensuing Western embargos on Russian energy exports.

With coal prices at record levels, Whitehaven has forecast a matching record full-year result. The ASX 200 energy share releases those earnings results this Thursday.

Whitehaven Coal is projecting to deliver its strongest ever full-year result.

Whitehaven share price snapshot

The Whitehaven share price has been a stellar performer over the past 12 months, rocketing 231% higher. For some context, the ASX 200 is down 6% over the full year.

As for the broader energy sector, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 45% in 12 months.

The post The Whitehaven share price just leapt to another all-time high. Here’s why appeared first on The Motley Fool Australia.

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• Why ASX 200 energy shares could still have decades of prosperity ahead: broker
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Georgie Gardner for Nine’s Late News on Sunday night to discuss the falling price at the pump, an upcoming RBA speech on climate change and the risks for the financial system, plus a view on earnings season so far, and expectations for the ASX.

[youtube https://www.youtube.com/watch?v=RhPLNqSXTQo?feature=oembed&w=500&h=281]

The post The falling petrol price, climate change and ASX futures. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX 200 iron ore shares have lifted in the past month, but could some news out of China provide a boost?

The BHP Group Ltd (ASX: BHP) share price has risen 13% in the past month. Meanwhile, Rio Tinto Ltd (ASX: RIO) shares have risen 2.24% and Fortescue Metals Group Ltd (ASX: FMG) shares have jumped 8.53%.

So what could be impacting investor sentiment in these ASX 200 iron ore shares?

Could China provide a boost?

Amid China reopening its economy following harsh COVID-19 lockdowns, it seems ASX iron ore shares are now in focus.

Australia is the world’s largest iron ore exporter, according to Statistica figures. Meanwhile, China is the biggest iron ore importer.

In financial results last week, BHP said demand in China into FY23 is “improving”. BHP said China is “pro-growth”.

In contrast, the miner said on the demand side, the rest of the world is “deteriorating” and “anti-inflation” heading into FY23.

In half-year results in late July, Rio said China has “modest inflationary pressures” and more room to “promote growth”.

In comments cited by The Age, Ausbil Global Resources Fund portfolio managers Luke Smith and James Stewart said China is “stimulating growth”, adding:

While Western developed economies are slowing, China is reopening, and is likely to accelerate growth coming out of recent hard COVID lockdowns through significant stimulus.

Meanwhile, Saxo Bank country head of direct sales David Harvie is predicting iron ore consumption in China to fire up again. He said:

Building cities the size of Brisbane once a month, or whatever they’re doing over there, that ain’t going anywhere either. Our house theory is that it is a demand question, and that should be satisfied by virtue of some of those large economies kicking off again.

However, ANZ commodity strategists Daniel Hynes and Soni Kumari see “limited upside” in iron ore prices”. In an ANZ research note last week, they said:

We ultimately see prices at the end of 2023 sitting under USD100/t as the market tightness eases.

The post Could this be set to boost ASX 200 iron ore shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It hasn’t been a great start to the trading week thus far for ASX shares. At the time of writing, the S&P/ASX All Ordinaries Index (ASX: XAO) has slipped by 0.8% to back around 7,300 points. But we can’t say the same for one little-known ASX coal share.

In stark contrast to the All Ords, the Australian Pacific Coal Ltd (ASX: AQC) share price is on fire today. This coal share closed at 14 cents a share last week, but opened at 26 cents this morning, before dropping to the present price of 25 cents a share, up a pleasing 85.2%.

However, earlier this morning, the company touched 27 cents a share. That was a whopping 100% rise on last week’s close at the time.

So what on earth is going on with Australian Pacific Coal that would elicit such a dramatic jump in valuation?

Why did this ASX coal share double in value today?

Well, it seems that an ASX announcement from Australian Pacific Coal this morning is responsible.

This morning, the company announced that it had received a “non–binding alternative proposal” for the sale of its Dartbrook Project from Nakevo Pty Ltd. Previously, the company had received an offer for Dartbrook from major shareholder and creditor Trepang Services Pty Ltd. 

Nakevo, a private company backed by former coal magnate Nathan Tinkler, proposes to provide “immediate funding to AQC by way of an equity subscription for 19.97% of the shares in AQC at $0.30 per share for a total of $3.78 million (less fees and expenses).”

Nakevo is also proposing to make a takeover bid for Australian Pacific Coal “for up to $0.30 per share, to allow existing shareholders to take the opportunity to liquidate their investment, should they wish to do so”. 

Australian Pacific Coal has stated that “the Proposal is at an early stage, is conditional and requires further consideration. Shareholders are advised to take no action at this time.”

However, investors certainly seem very excited by this latest development, considering what the Australian Pacific Coal share price has done today. No doubt this is a space well worth watching going forward.

At the current Australian Pacific Coal share price, this ASX coal share has a market capitalisation of $6.81 million.

The post Guess which little-known ASX coal share just rocketed 100% appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The market is taking a tumble today, but some ASX lithium shares are bucking the trend after a top broker upgraded its outlook for the commodity.

The S&P/ASX 200 Index (ASX: XJO) fell 0.8%, with all sectors losing ground in late morning trade. A poor lead from Wall Street on Friday triggered the sell-off, although one group of shares are faring better.

These are ASX lithium miners, as the broker Macquarie lifted its price forecast for the battery-making mineral.

Upgrades for ASX lithium shares

That’s an unusual move given most analysts have been downgrading commodity prices. Iron ore and copper are some examples as worries of a sharp slowdown in economic growth, particularly in China, weigh on sentiment.

But the dour prediction doesn’t extend to lithium, at least not from Macquarie’s perspective. The broker noted that Chinese lithium carbonate prices continue to trade at material premiums to regional prices. This is great news for ASX lithium shares.

EV sales racing ahead

Macquarie said:

We upgrade medium-term lithium carbonate and hydroxide price outlook and expect prices to stay higher for longer. We also lift our regional lithium price forecasts to match the pricing strength in China.

The broker went on:

We continue to expect a price differential between regional prices and Chinese prices reflecting an approximate 3-month lag, which we expect to close in CY24.

The broker also pointed out that sales of electric vehicles (EVs) continue to grow strongly in 2022, despite rising battery prices. Global EV sales are up an estimated 57% year on year between January and July. Macquarie expects sales will hit 10 million vehicles this year, or just over 50% vs. last year.

Higher spodumene prices will benefit this ASX lithium share most

Macquarie also upgraded its short- and medium-term spodumene prices (another source of lithium). This is because it doesn’t see new supply hitting the market until sometime next year.

As a result, its peak price assumption increases by 2% to US$5,000 a tonne (for the quarterly average price).

Importantly, Macquarie’s spodumene price expectations for CY23 are pushed up to 55%. Prices for the next three years are upgraded by more than 100% in each year.

ASX lithium shares to buy now

The ASX lithium share that stands to gain the most from a stronger spodumene price is the Pilbara Minerals Ltd (ASX: PLS) share price.

This probably explains why the Pilbara Minerals share price jumped 2.95% to $3.14 at the time of writing.

Macquarie increased its 12-month price target on the miner by a whopping 40% to $5.60 a share.

Meanwhile, the Allkem Ltd (ASX: AKE) share price is outperforming the market with a 1.3% gain. Macquarie lifted its price target by 30% to $21 a pop. Allkem offers unique exposure to both lithium brine in South America and spodumene production in Australia.

The Mineral Resources Limited (ASX: MIN) share price also got a boost. The iron ore and lithium producer has gained 1.49% after Macquarie pushed its price target up by 12% to $95 a share.

The post Why these ASX lithium shares are outperforming the market today appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau has positions in Allkem Limited and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The BHP Group Ltd (ASX: BHP) share price is faring quite well so far this Monday, all things considered. BHP shares are presently up by 0.28% at $41.665. That looks decent against the broader S&P/ASX 200 Index (ASX: XJO). The ASX 200 is down by 0.69% so far today at just over 7,065 points.

But over the past week or so, the story is far better for BHP. The Big Australian has gained 7% since last Monday. The miner is also up an even more pleasing 13% over the past month. Investors certainly approved of the FY22 earnings report that BHP dropped last week.

As we covered at the time, this saw BHP report a 16% surge in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to US$40.3 billion. Earnings per share (EPS) also rose by 25% to US$4.212. This led BHP to declare a final dividend of US$1.75 per share.

But what does the future hold for BHP? After all, investors are still a little concerned about the trajectory of the global economy going forward. It’s not too hard to find an investor or commentator that is eyeing off a potential global recession in the next 12 months.

What’s next for the BHP share price?

Well, one expert investor is still very bullish for ASX iron ore miners like BHP. And it’s all thanks to China. According to reporting in The Age today, the Ausbil Global Resources Fund reckons demand for raw resources in China is only going higher in the short to medium term.

Ausbil co-portfolio managers Luke Smith and James Stewart told the Age that China “had already commenced the process of stimulating growth and was expected to accelerate stimulus in the second half of 2022 and into 2023”.

Here’s some more of what they had to say:

While Western developed economies are slowing, China is reopening, and is likely to accelerate growth coming out of recent hard COVID lockdowns through significant stimulus…

Although demand may soften from the West, markets are tight, and any acceleration from Chinese demand should underpin prices that are already stretched… From an investment perspective, this does not mean we are aggressively invested in the current environment, given significant uncertainty, but this view does support us maintaining a positive net exposure in the current market.

This outlook gels with what BHP CEO Mike Henry had to say when the company reported its results last week:

We expect China to emerge as a source of stability for commodity demand in the year ahead, with policy support progressively taking hold. At the same time, we expect to see a slowdown in advanced economies as monetary policy tightens, as well as ongoing geopolitical uncertainty and inflationary pressures.

So lots of optimism for BHP all around going forward. This mining giant is certainly worth keeping an eye on over the rest of the year and beyond.

At the current BHP share price, this ASX 200 miner has a market capitalisation of around $211 billion, with a dividend yield of 11.52%.

The post Could the BHP share price be set to benefit from ‘China reopening’? appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Star Entertainment Group Ltd (ASX: SGR) share price is in the red today, down 0.86% after the casino group announced its financial results for FY22.

Shares in Star Entertainment are swapping hands for $2.89 apiece at the time of writing after a mixed morning of trading.

Let’s cover off what the company announced.

What did Star Entertainment report?

• Normalised gross revenue down 2% year-over-year (YoY) to $1.53 billion
• Earnings before significant items and interest, taxes, depreciation, and amortisation (EBITDA) down 45% YoY to $237 million.
• Normalised net loss of $32 million
• Domestic revenues in June this year up 11% on pre-COVID levels

Star Entertainment said the company was working to recover lost ground after its earnings were “materially affected by COVID-19”.

Key gambling locations were closed for extended periods due to lockdowns and other operating restrictions, including The Star Sydney, which was closed the longest at 102 days.

Despite facing strong headwinds from COVID-19 restrictions, Star Entertainment claims to be bouncing back strongly.

The company advised that all properties were operating at above pre-COVID levels, with group domestic revenue up 9% from 1 July to 18 August this year.

The company did not declare a final dividend for FY22.

What else happened in FY22?

Star Entertainment made several executive changes, including the appointment of three new board members. Robbie Cooke joined the company as managing director and CEO, and Scott Wharton was named as the new CEO for The Star Sydney and Group head of transformation.

The company also made progress on several acquisitions in the pipeline, including for Union Street Pyrmont and the Sheraton Grand Mirage Gold Coast.

In addition, Star Entertainment reported there was potential to “unlock the underlying value of the Group’s property assets”.

What did management say?

Star Entertainment acting CEO Geoff Hogg said:

The past year has demonstrated how resilient our business is and how quickly customers return when the properties are allowed to open and operate without restrictions. This gives us great confidence moving forward.

The fundamental earnings prospects for The Star’s domestic business remain attractive. They are underpinned by valuable long-term licences in compelling locations while the transformation of our properties into globally competitive integrated resorts continues.

What’s next?

Star Entertainment expects to make continued progress on its renewal program for the transparent reporting to regulators in Australia. The renewal program encompasses several aspects of the company including for “governance, culture, training and technology initiatives”.

Related to this is that the company will focus on retaining its licence for New South Wales and Queensland states.

No earnings or revenue guidance was provided for FY23 but an estimate for capital expenditures (CAPEX) was. The company expects CAPEX to be in the area of $150 million, down from prior guidance of $175 million.

Finally, Star Entertainment will continue its focus on improving fundamentals, including hastening its COVID-19 recovery, keeping a lid on costs, and responding to challenges and threats in its competitive environment for Crown Sydney.

Star Entertainment share price snapshot

The Star Entertainment share price is down almost 24% year to date. By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 7% over the same period.

The company’s market capitalisation is $2.75 billion at the time of writing. 

The post Star Entertainment share price slides on $32 million loss appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Do you remember the heady days of 2021, when Bitcoin (CRYPTO: BTC) surged past $60,000, and the entire crypto market was hitting new heights? There were plenty of people saying that they wish they had bought Bitcoin when it was $20,000 or that they wish they had bought Ethereum (CRYPTO: ETH) below $2,000. After 2022’s sell-off, patient, risk-tolerant long-term investors can do just that as prices have returned to these levels. Here are three cryptos that I would regret not buying during the dip. 

1. Bitcoin

Bitcoin has shown some signs of life as of late, rallying 33% off the 52-week low of $17,664 that it hit in June. Bitcoin is still a long way off from its all-time high of over $68,000 last November, and I like the fact that investors don’t have to try to “catch a falling knife” now that the largest digital asset by market cap has stabilized and looks like it is building momentum again.

As the original cryptocurrency and the largest digital asset with a market cap of nearly $450 billion, Bitcoin is a blue chip cryptocurrency that I would buy during this pullback. When the stock market is down, it is a great time to start or add to discounted positions in top global companies, and the crypto market is no different — during this downturn, investors can accumulate a position in Bitcoin at a discounted price rather than gambling on smaller altcoins with questionable utility that are down 95% from all-time highs they are unlikely to ever approach again. 

Bitcoin’s Lightning Network has made using and transacting in Bitcoin easier and more accessible than ever before. Companies like Block (NYSE: SQ) are leveraging Lightning to allow their customers to be paid in Bitcoin and to round up credit and debit card purchases for Cash Card users. These services are making Bitcoin more widely available to the general public than ever before and can help it reach even further adoption. 

I like the idea of all investors holding at least a small amount of Bitcoin in their portfolios. The hard cap of 21 million Bitcoin that will ever exist stands in stark contrast to the inflationary nature of all other global currencies. Bitcoin is a worldwide network that anyone on the planet with an internet connection can participate in, so it remains an attractive asset to individuals in countries that have seen their currency suffer from serious inflation over the years, such as Turkey and Venezuela. The increasing ease of using Bitcoin and its global appeal as a decentralized asset with a capped supply make it an attractive investment to allocate at least some investment toward, especially during the current market weakness.

2. Ethereum 

Ethereum has rallied over 100% from its cycle low in June, but the second-largest cryptocurrency is still down 60% from its all-time high. Ethereum is also benefiting from a major upcoming catalyst in The Merge, its long-awaited switch from the proof-of-work consensus to proof of stake. After completing a successful trial run on its Goerli testnet, The Merge is now expected to take place between Sept. 15th and Sept. 16th. The transition will make Ethereum less energy-intensive and thus more climate-friendly. It will also make Ethereum more decentralized, which proponents say will make it more secure. Furthermore, Ethereum will no longer be an inflationary asset and will instead become deflationary in nature, which will make it more scarce over time and should add to its value as demand increases. Some observers also point out that Ethereum will become more scalable as sharding is implemented. Lastly, more users will be able to earn staking rewards by participating in the Ethereum network. With this array of improvements in the wake of a major catalyst, Ethereum is another blue chip cryptocurrency that I have been adding to on the dip. 

3. Solana 

With a market cap of $15 billion, Solana (CRYPTO: SOL) is much smaller (and much newer) than Bitcoin and Ethereum but is also worthy of a position during the current downturn for investors who are looking to diversify and are comfortable moving a bit further down the risk curve. Solana is down 84% from its all-time high but is starting to catch some momentum as well, with a 56% increase since hitting its cycle low in June. 

Solana is establishing itself as a smaller but viable competitor to Ethereum in the world of non-fungible tokens (NFTs), with leading Solana marketplace Magic Eden recently achieving unicorn status with a valuation of over $1 billion in a private funding round. OpenSea, which is viewed as the bellwether for the NFT market, recently opened up its platform to Solana NFTs after previously exclusively featuring Ethereum and Polygon (CRYPTO: MATIC) NFTs. Solana is now the second-largest protocol for NFTs as measured by secondary sales, trailing only Ethereum. Solana is home to a talented team of developers, and its uses are not limited to just NFTs or DeFi applications like many other cryptos — Solana developers are even working on a phone that will make it easier to interact with decentralized applications when using a mobile device. This phone is scheduled to launch in early 2023 with a price point of $1,000. While this may seem a tad esoteric to some observers, I’m loath to count Solana out because co-founder Anatoly Yakovenko and other key figures from Solana all have prior experience at Qualcomm (NASDAQ: QCOM), which creates semiconductors for the mobile phone industry.

The crypto bear market has created the opportunity to start or add to positions in the top two assets that drive the entire industry, Bitcoin and Ethereum, as well as emerging challengers like Solana, at steep discounts to where they traded just a few months ago. For risk-tolerant investors, this could be the right time to allocate a percentage of their portfolios toward cryptocurrency with some smart buys. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 cryptos I would regret not buying on the dip appeared first on The Motley Fool Australia.

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• The Aussie-born crypto platform taking on Ethereum
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Michael Byrne has positions in Bitcoin, Ethereum, and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Block, Inc., Ethereum, Polygon, Qualcomm, and Solana. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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