Proceed with Extreme Caution Dear Money & Crisis Reader, Now is the time to be extra careful. The US has erupted in riots/civil unrest. The economic and cultural impacts of these events will be extreme. History has shown us that riots can have long-lasting, highly negative effects on local economies for years after the riots have ended. Despite all of this horrific news, the markets are up somewhat this morning. And that is a bad sign. It reminds me of what the markets were doing in late February: while the COVID-19 pandemic/economic shut down were just around the corner, the markets were actually rallying (red square in the chart below). Then this happened. Fast forward to today, and the week before a large portion of the economy literally went up in flames, the markets are rallying once again. Let's be clear… the US economy was already in a depression before the riots started. The riots have made things exponentially worse. The potential fallout from this is tremendous. And we could indeed see another crash hit. Again, now is the time to be careful – with yourself, your loved ones, and your investments. That said, don't be emotional about this. Use a trading tool to help you decide when it's time to move to the sidelines. |
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