However, the question made me really think of all the negatives our economy is going through: a possible world recession, inflation and rising interest rates, labor and supply constraints, a war, China/US disagreements, politics, etc. To top that off, the world is still healing from Covid. Though I tend not to take advice from friends and family, sometimes I find it really difficult to ignore their voices. I’m only human after all and I like to keep an open mind.
To manage through these intruding thoughts from well-intentioned folks, I ask myself, “What would Warren Buffett?” or “What would Michael Burry do?” I also like to look at TipRanks to see what are the top managers doing. I believe it’s always smarter to silence the voices of those without long-term investment success and turn to those that have a really long history of hitting out of the park. As it turns out, Michael Burry has been doing a lot of selling recently and is predicting a market crash comparable to 2000 and 2008. Warren Buffett has been buying a lot of energy stocks.
That said, I believe I’ll liquidate a bit. Maybe hold 20% cash. Wait for the market drop and some signs that bankruptcy and inflation have peaked. Bankruptcy has gone up since my last check. It was 7,425 between September 19 – 25. Prior to that, between September 5 – 11 it was 6085. Google results are 15,800,000. At last check, September 23, it was 292,000,000.
