JLarkin

Danger: Stock Market Crash - Recession - Depression Ahead

Great comment Larry. To do otherwise is just gambling.
John


On Mar 18 10:18 AM Larry House wrote:

> Well, you are absolutely right that we will only really know in hindsight.
> We diversify our investments to hopefully reduce risk, and also because
> we can't be sure which asset is going to do well. I think the same
> thing makes sense with what may happen in the larger economy. We
> can't be sure what we are in, so one should invest (which includes
> hold cash) to try to cover all bases. There is no perfect way to
> do this, but that is the challenge we face.
>
> I know we all want to take hold of any glimmer of hope, but so many
> of the weaknesses in the economy--consumers, banks--are just at the
> beginning of the cycle. More weakness is almost surely ahead in these
> areas. To think at this point that we are past the danger point and
> can jump back into risky assets with abandon is a fool's game.<br/>
>
> My plan, and I am not suggesting it for anyone else, is to keep some
> exposure to a wide variety of assets that include stocks, bonds,
> precious metals, commodities, and cash. I reject the idea that one
> should be all out of stocks, etc. because of the uncertainty. By
> the time it is certain, it will be too late invest.