Comment by alecco
3 years ago
- Core inflation not going down
- Recession now undeniably starting (several friends in Tech are losing their jobs in companies doing well)
- Ballooning deficits and debt at every level
- High rates making debt ballooning faster
- USD dominance decreasing
That's known and now not matter of opinion but hard facts. Now, where to invest? I have no idea (and I'm pretty sure traditional investment knowledge doesn't work anymore), so I do money markets and take the hit until I figure something out. Maybe there's a non-hype AI application opportunity somewhere, who knows. Worrying too much makes you do dumb life-altering things. In uncertain times, I chose to invest the time in enjoying life a bit. Wait and see.
Core inflation is going down, just not as fast as other sectors. People losing their jobs is not a hard fact of a recession, we have one of the lowest unemployment rates in history.
I'm just indexing and staying happy, worry free, it worked for the last 100 years and I'm sure it'll work for my lifetime.
I have a similar outlook. If the stock market starts losing against inflation over my time horizon (several decades) then we have bigger problems. There will be recessions in the future. I'll keep tossing money into index funds through the bottoms and enjoy coming out the other side. Every three months, I get a statement in the mail telling me how much money I've made or lost. That's all the attention I need to pay to my longterm finances.