Was coronavirus black swan bursting a bubble

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James Carter
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Was coronavirus black swan bursting a bubble

Post by James Carter »

Everyone should have learned one very important lesson from the prior two Fed bubbles of 2000 and 2008. Ride Fed bubbles up and sell when the black swan (like coronavirus) lands on the house of cards they have built by increasing debt. The braves should even go short when the black swan lands. Where are the advisors saying that? After all it is what Wall Street, CEOs and our own politicians did. They SOLD!
If you sell then you can nibble on stocks to get back in. Most importantly, you can start buying on the way back up. There is no justification for riding stocks down 30-50% because of this coronavirus. If you ride stocks down 50% then they have to double for you to get back to even. And don't just look at the history of US stocks and say that always happens. Look at Japan too. Remember that we are doing what they did - attempting to cure a debt bubble with even more debt. As they have proven, that doesn't always work.

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