Here’s why and the hidden problems that affect you. Don’t underestimate the stress of a recession.
Press enter or click to view image in full size
One hour ago, I made the most difficult financial decision I’ve ever made.
It came after talking to my mentor. He said “record unemployment, an obviously inflated stock market, and a health crisis can’t be good for your portfolio. It either stays the same or flat. But really, more record highs? The chance of that is low.”
His logic is spot on. When there is too much risk in financial markets, one of the best things you can do is take profit and sit on the sidelines for a while. You may miss some of the discounts when stocks plummet, but at least you keep your sanity.
So I hit the sell button on everything. I’m out of the markets for the foreseeable future. This current environment reeks of 2008 and the tech bubble all over again. History is never the same but it sure as hell rhymes.
So I’m sitting in cash. I’ve made 30% off the portfolio recently, and it’s time to sit back and relax for a bit.
The problem right now is multi-faceted:
- The Federal Reserve is inflating the stock market through quantitive easing and printing money. (Central banks…