If anyone tells you they know when the market is going to crash, nod your head, and never talk to that person again.
That’s drastic, yet you see the point – nobody can predict where the market is going. Never ever. If any person could predict where the market was going, they would be the most valuable person in the world of finance and economics. My guess is the first THING to predict where the market is going will be Artificial Intelligence. Not people. People are dumb when compared to AI.
Bonus – In Tony Robbins book Money Master The Game he shows that 95%+ of Wall Street people cannot predict the market. That’s their job, and they can’t do it well. They also get bailed out by the government and get massive bonuses, despite being poor performers. Can someone tell me where the economic logic is there?
Eventually, the market will crash because markets always fluctuate thanks to business cycles, sector bubbles, investor confidence or fear, and a billion other factors (hence why we can’t predict where the market will go, only AI can). So when that happens, what should your portfolio look like?
*Disclaimer* I am not a financial advisor. I simply use the Internet to share my perspective on what I’ve learned and what I’m practicing. Make your own decisions and don’t blame RankUp if you loose all your money. Thanks! *Disclaimer Over*
Defensive Portfolio:
When shit hits the fan, and the stock market going into a landslide, first off, don’t sell. Just don’t.
Second, you should have a defensive portfolio built up. A defensive portfolio will encompass less growth stocks and more positions in historically stable markets.
My own prediction is to won precious metals, ETF’s of gold, along with ETF’s of mining companies.