Stock Market

[lookout123]

The 50 Bps was window dressing for the psyche. A large correction is coming. It has been coming since opening day of the bull market, that's how it works. Whether it comes today, tomorrow or 2009, no one really knows. Economists and market timers have predicted 11 out of the last 9 bear markets and their track record speaks for itself. Buy quality companies based on solid fundamentals. Hold them until there is a fundamental reason not to. Only buy companies that fit within your predetermined asset allocation model and do not veer to the right or left of this regardless of what you hear on the tv or radio.

This could be the beginning of the recession, or not. Just remember that the last recession only lasted 8 months and there are still doomsdayers waiting for that one to end so they can invest again. Seriously, I meet them all the time. They've been sitting on the sidelines since 2002. (notice that they sold at the bottom and missed the last 5 years of gains)

But unless you are retiring and drawing income from your investments in the very near term, relax. There are only two options:
A) This is just like every other time in the market history, it will go down then come back to set new highs, or B) This time it really is different and the market will fall to 0. If that happens so what? Now you are on a level playing field with Bill Gates - neither of your bank accounts are worth anything.

[xoxoxoBruce]

Economists and market timers have predicted 11 out of the last 9 bear markets and their track record speaks for itself.

Say what?

[lookout123]

Just my way of saying that if there were a recession every time the economists were united in believing it was at our doorstep we wouldn't have gone 4.5 years without one. Many many economists are permabears because they live in theoretical worlds surrounded by mountains of negative data. To be fair there are also many permabulls that see everything as proof of the boom we are just entering. Market timers are also notorious. Come to think of it - anyone who claims to be predicting the future of anything usually is wrong just as often as they are right. Crystal balls get foggy and all that jazz.

You can live and invest based on A) predictions, or B) principles (processes). I know what I choose, but everyone has to make that decision for themselves.