Just Watch

The good times — at least for those who are fortunate enough to own stocks — may be coming to an end.

It’s been quite a ride since the Great Recession/Financial Crisis of 2008. But the sky isn’t the limit. It never was.

I wonder who was buying stocks at the all-time highs last year. I suppose it was people who think you can’t lose money in the stock market if you’re willing to buy and hold. I suppose it was people who weren’t familiar with these charts:

I’m not predicting permanent losses for people who bought at the top. Like everyone else, I’m unable to predict the future. But I’m not oblivious to risks. And I realize that all-time highs may remain just that: all-time highs. If not forever, then for a very long time. Longer than some of us will be alive.

The odd thing about the current situation is how much of the damage is self-inflicted. The world’s largest economy — the U.S.A. — decided to put an immoral lunatic in charge. We’re paying the price now, and I suspect we’ll pay a large price well into the future — long after Donald Trump has left office. But it is what it is. Decisions have consequences.

Meanwhile, everyone has to manage their affairs accordingly, taking all the charts into consideration.

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