“I think that there’s a whole swath of current people investing that are going to get wiped out. They will get wiped out because they have never experienced emotionally, psychologically down markets. It is absolutely brutal to wake up, look at your screen and see red day after day after day after week.
I don’t think most investors today have any idea what that feels like.” ~MrNotAdvice
We do not want to scare our listeners, but being a savvy investor requires being aware of the risks and not turning away from the data, for better or worse. And we have plenty of data to share with you.
Our resident Vulture, MrNotAdvice, walks us down memory lane, recalling what caused the 2008 financial crisis, and the reasons why the current economic crises — or dominoes — or doomsday scenarios– might trigger an even more brutal market downturn.
On the back of Episode 10’s overview of the commercial real estate crisis and Japan’s dire economic situation which won’t bode well for US treasury values and the impact those will have on interest rates, we also discuss a lack of growth outside of federal stimulus.
The expanding war in the Middle East and increasing geopolitical risks.
Since timing matters, and timing the market is hard, how should investors assess their risk profiles? What ought we do in the face of several highly impactful economic scenarios like these?
One answer is to raise cash and treat it as a position, a strategy MrNotAdvice explores in greater depth.
And did we mention aliens… The aliens are coming! The aliens are coming!
And you thought investing was nothing but spreadsheets!
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