I mean, what if the “long term” you’ve been working toward is actually here? And it’s going to bust soon? Do you just keep working toward something that is only going to get worse from this point forward. What if NOW IS what you spent your time working toward?
I mean, what if the “long term” you’ve been working toward is actually here? And it’s going to bust soon? Do you just keep working toward something that is only going to get worse from this point forward. What if NOW IS what you spent your time working toward?
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It’s a good question and the answer would be different for each individual. If you are a serious investor then you must have a set of beliefs to guide you.
If you are goal oriented i.e. you want to build a nest egg for retirement and you have a numerical goal then when you reach that goal you may want to move the money slowly into the most stable of investments which would be T-Bills. Once that is accomplished you could continue to invest a bit more aggressively since your retirement has been secured. I believe one should hold at least 3 yrs cash to take care of all obligations (I hold 5) should the market suffer a Black Swan event.
Keep in mind there is no such thing as a 100% secure investment but right now US obligations are as close as you can get and still stay ahead or at least abreast of inflation. America due to its status as a reserve currency is widely held by other nations because of America’s perceived stability and economic strength (which we are in danger of losing).
https://www.thebalance.com/what-is-a-reserve-currency-1978926
In the end you have to be aware of your comfort level. If the thought of taking a significant hit in your portfolio keeps you up at night perhaps you should be in the market at all but stick to FDIC insured CD’s etc.