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Neither bearish nor bullish, what you should be is an analyst and an avid consumer of information. Always look for the best informed sources and contrast the information with contrary thoughts. If you also act reasonably and do not expose more capital than you should, no matter what happens in the markets, believe me.
In bull markets you should be collecting profits or at least recovering your investment and in bear markets you will be buying new positions at good prices and reinforcing your previous bets to average a better price.
The key to all of this starts with not investing money that you are going to need to use (sorry for you if you are as screwed as I am) and doing your job (not just reading post on Publish0x).
The importance of not investing more than you can lose is vital because everyone needs a learning process and rest assured that you are not going to be the exception. When you are investing every time you learn it will be at the cost of a mistake and every mistake usually leads to a loss.
In order not to make this post too long and repetitive I am going to leave you a small research task, I hope it motivates you to start your own search for information and that you share with me what you find most useful!
In the current economic context there are voices that have been warning for some time that a great depression similar to that of 1929 is coming. I personally believe that there is a chance that this could happen but it can still be avoided, I will explain how I see it.
It is true that in 1929 there were similar circumstances in the stock markets to those of today, with the super-inflated prices of some stocks and the economic growth cycle exhausted. But in terms of the management of the economic cycle, the right decisions were not made.
During the previous years, the ease of credit had allowed for unbridled economic growth. It was possible to invest $10 in a stock valued at $85 by financing the remaining $75 and at the end of the year sell that stock for $420 to pay off the debt and make a good profit.
Of course, this rate of economic growth is not sustainable and if you are not clear about it, you have a lot of work to do. In the case of the stock market, I don't think the fall could be avoided, there were stocks well above their real value (as in any investment market today, and I would dare say in any consumer market). But the fact that the depression became something that affected all sectors and practically all countries is something that I believe was a consequence of not taking measures such as those that are now being taken.
The similarities with 1929 are there, the economic growth and ease of credit of the previous years, the enormous growth of capital invested in the stock market, geopolitical instability (war) and some other factor are what gives strength to the most pessimistic voices.
But unlike in 1929, the FED has raised interest rates twice this year (which has already managed to lower inflation growth) and has two more scheduled.
What data do you think will be very influential in the direction that the economy and the markets will take?
Hey lazy, let me know that you read my content and are not just hoarding coins that are worth a few cents and hoping they will make you a millionaire.
Show me your not a bot!
Best regards!
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Do not forget to follow all my advice if you want to lose your wife because you have put the rent money in "coins that are worth cents but can be worth thousands of dollars"
