Panic!!!
Addressing the current market
If my DMs, text messages, emails, conversations, and phone calls from friends, family, and co-workers are any indication, there is panic out in the financial world right now.
“These tariffs are going to crash the economy”
“My 401k is down huge”
“Trump said stocks are a fake economy”*
“QE is ending”
“Europe stocks are up because the USA is losing its dominant position”
“There is another pandemic brewing, even worst than the last”
There are 100s of various reasons I have heard for the recent drop in stock markets during these convos and just as many fears discussed - “housing is dead”, “stocks are dead”, “economy is dead”, “dollar is losing its standing”, “tech is dead”.
Despite all the different reasons and fears, the conclusion of nearly everyone is the same:
SELL! SELL! SELL!
PANIC! PANIC! PANIC!
I guess it is time to follow the heard, panic out, go to cash until things settle down…right?
Right?
The rest of this post will answer that question.
But in the meantime, check out this post from January (~10-12% higher markets), calling for de-risking. This proved prescience as 4 weeks later the market has been straight down for a month. This post even talked about how to keep some of the upside while protecting downside in case it didn’t play out so quickly.
The Most Important Chart You'll See This Year
Bold claim - The year is only 2 weeks old, but this chart is most certainly the most important one you see this year.
*[Note - he didn’t, he said the stock market was being propped up by a fake economy of gov’t spending and he was replacing it with a real economy that will lead to a yuge, greatest, economy the world has ever seen. Whether you like, hate, or are indifferent to politics, don’t run around repeating late night news/social media snippets.]