https://www.marketwatch.com/story/the-decades-hottest-investing-trend-playing-it-safe-11601585149?mod=mw_latestnews<snipit>
Shocks of 2008 and 2020 “illuminated the idea†that anything can happen, says one adviser....
“Consider a turkey that is fed every day. Every single feeding will firm up the bird’s belief that it is the general rule of life to be fed every day by friendly members of the human race ‘looking out for its best interests,’ as a politician would say. On the afternoon of the Wednesday before Thanksgiving, something unexpected will happen to the turkey. It will incur a revision of belief.*â€
― Nassim Nicholas Taleb, The Black Swan: The Impact of the Highly Improbable
Does anything from your recent experience make you feel like Taleb’s poor turkey on the fateful Wednesday before Thanksgiving? Say February 2020, when stocks plummeted from all-time highs to a sharp correction in a matter of days? Or maybe you think of September 2008, when the entire financial system was brought to its knees?
If you feel like you’ve incurred your own “revision of belief†over the past few years — the entire global financial system can’t just collapse overnight, modern science will keep us safe from a little virus, the greatest democracy in the world never has to think twice about a peaceful and orderly transition of power – you’re not alone.
============================================================================
Just another perspective, so just take it for what it is worth. But one thing is for certain. I can not remember an election in my lifetime (Maybe 1980 as an exception) that had more bearing on investment plans and strategies. IMO...any long term hopes for equity price growth reside exclusively with a Trump victory. Want more '10's slow growth and stagflation? You know the ticket. In any case, I still think stock/MF prices or overinflated. That is a fact. But investors are behind the proverbial rock and hard place as far as I can see. So much captial is locked up into 401K's, IRA's and fluffy situations where Cap Gains are an issue. Bonds and CD's have sank to microscopic levels that in the scheme of things, might not even outperform inflation. And the writer's discussion of annuties? He failed to mention that most of them are at about 2.5% locked in. (yuck) As far as myself, even at the crazy elevated costs now of precious metals.... they seem to be the best hedge against a government that has spent us into bottomless pit. That has at least been my recent adjustment plan. Would love to hear from others on their take on planning and how this election is influencing them.