In the wild you’d run from either
At first glance, you might think that statement doesn’t apply to investing.
But, you’ll find “runners” in either cycle – bull or bear.
Most investors want to know which cycle we are in now.
Bottom line: No one knows.
The Bears point to:
- Severe decline of the travel and retail industries.
- Mass unemployment.
- Lower than anticipated tax revenue.
- Companies facing higher costs of doing business.
- Artificially low interest rates.
- Uncertain short-term revenue uncertainties.
- Uncertain revenue outlook in the short-term because of all these factors and more leading to uncertainty, market volatility, and maybe a sever market pullback.
On the other hand, the Bulls will counter with:
- Fed commitment to low interest rates – for the foreseeable future.
- Fed commitment to “easy” fiscal policy – handing out money.
- Strong businesses will remain strong, grow, and pick up market share.
- Low interest rates encourage retail spending and private lending.
- Federal “free money” encourages spending.
- Businesses discover new revenue and cost-saving savings and future profits.
- Technology advancement, efficiency gains and ingenuity will continue driving greater long-term profits.
News reports will continue to highlight how bad things are – fear gets readers and viewers. This is the short-term news
In the long-term, the American people and businesses have been, and are, resilient and should prove strong in the long-term.
Holding a long-term view is essential for investing and retirement income success.
The best approach for the long-term is to keep a long-term view, staying focused on having the right balance of safe and growth money, and owning financially healthy Quality companies for your growth money for the long-term.
“Ignore the people and all influences that pose a threat to your joy. Instead, surround yourself with people and influences that encourage the joy-filled life you want to lead.”
― Barry H. Spencer