The S&P 500 is up 42% over 18 months. If we see a downturn soon it won’t surprise me. So what am I doing about it?
NOTHING!
Just setting expectations so if it happens I’m like “yup, there it is” instead of 🤯.
Why would I do nothing if that’s my expectation? Because the market goes up 70% of the time and down only 30%.
Since I can’t actually predict the future, I’ll take the 70/30 odds and STAY in the market.
And we’ve had a very recent data point to illustrate the example of an assumed future not manifesting.
Remember how EVERYONE was expecting a recession for the last 3 years? Yes, that one. The recession that NEVER came!
After a swift uptick, I like to mentally adjust to looking out for a downturn without actually taking action on something that may never come to pass.
