What never ceases to amaze Your Survival Guy is how the investors overweight in stocks are up in arms in any market decline, as if stocks should go up forever. They don’t. And don’t blame your Survival Guy. Don’t blame the weatherman for the weather.
The charts below are evidence that the overvaluation of equities has been building for some time.
Now then, will stocks come back? Not my concern. As you have read here in Rich Man Poor Man, the rich man doesn’t need the markets, and when prices are down, he’s reinvesting dividends at reduced prices. Who doesn’t like a discount? Those who are overextended.
No one knows how long stocks will stay down. If it wasn’t the tariffs, it could have been a multitude of other factors. It’s called investing. Don’t rely upon stocks to make your dreams come true. That’s what work is for. Work to make money. Invest to keep it. And don’t blame the messenger.
Action Line: Look below at the three deadliest markets this century (until now). Balanced portfolios focused on dividends and bonds outperformed portfolios with 100% stocks each time. When you want to talk about balance in your portfolio, email me at ejsmith@yoursurvivalguy.com. And, click here to subscribe to my free monthly Survive & Thrive letter. My most recent letter talks about bonds, when to buy and sell, and gold miners.
Originally posted on Your Survival Guy.
