The stock market is behaving strangely just now. The flood of government money has added a dimension not normally part of the stock pricing decision. It is reasonable to assume the government will stop inserting trillions into the economy and the market will be affected.
Bonds too I suppose.
If we anticipate the market will correct down again, what should we do now to be in a position to benefit from that. Maybe nothing is a good answer. Maybe it will go up more. Your choices will depend on a number of factors:
A complicated question and one for which there is no right answer.
Panic is a bad thing usually, but sometimes it is required. If so, ideally, panic first. You can only tell if you must panic by anticipating the variables. So have such a plan.
You will be less emotional if you have anticipated several possible futures. As the future unfolds, some of your anticipating will be shown to be false and you can adjust earlier than others. Do not get tied to the unique possible outcome. Even when the future looks to be an extension of normal, not the case now, people will be surprised by how creative nature can be.
It might be smart to take a look at notes about Nassim Nicholas Taleb’s book, “Antifragile.” It is the study of things that benefit from disorder. I haven’t really thought it through, but I sense, for the West at least, disorder is just now at a near all-time high.
Take this thought to heart:
“It is better to be roughly right than precisely wrong.” –
Anticipating is a key to planning and planning is the key to success.
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