Yes, there will be a correction. Markets always correct to the downside, and to the upside. That’s why I’ve been taking profits off the table for over a year. I’m raising cash levels for two reasons, my age and the maturity of this bull run.
However, history has proved that equities have been the most consistent method of creating wealth in all of human history. Gold, property, bonds - none can touch equities.
I’m no Pollyanna when it comes to the woes that liberalism and The One have visited upon our economy. But anyone who bets against the long-term viability of the U. S. businessman and the creativity of Free Enterprise is taking a contrary position to historical patterns.
Funny how when land prices tanked the losers blamed Bush for cutting prices below 'true' value, but when stock prices tanked they called it a burst bubble. OK so folks are goofy with money talk; but when my feelings hurt from hearing all the 'stocks are bad' nonsense I just cry on my way to the bank.
"...it is going to resemble a complete collapse more than a correction..."
Doom'n'gloom sells, people just eat it up and rave about how smart the crybabies are. Somehow it never seems to matter that America has grown steadily for hundreds of years. The fact is that we got a big problem with opening our eyes to the fact that human economic activity's been growing since the Garden of Eden --most folks simply hate losses more than they like gains. I mean, if someone makes $100 in a day he's happy, but if he starts out making $1,000 and loses $800 he's furious even though he's cleared twice the profit.
There's a popular investing strategy of secretly betting heavy on growth while publically proclaiming that the end is nigh. That way when prices drop 20% we can say "I-told-you-so" and nobody remembers the previous year's doubling.