Of course not. "Preparing to get smashed on the rocks" is as unrealistic as tacitly assuming you will get richer and richer.So what should you do? Ride the wave and prepare to get smashed on the rocks?If you look at the investment lifespan of most people on this forum (let's say since the early 1980s), there has been no sustained stock market crash, bonds performed fantastically as interest rates fell for 4 decades from record highs to record lows, and real estate has soared. For the most part we have avoided high inflation levels, which have rarely hit 10% and not sustained. There have been no major wars (none at all on our soil), no major natural disasters, no governmental instability, and massive technological innovation. Unemployment has been under control. The one major pandemic disproportionately killed the elderly population. Since WW2, we Americans have lived through what could possibly be the longest period of peace, freedom, sustained economic growth and stability in the history of civilization.
I don't know what "well prepared" really means. But it has been very difficult for any sensible middle class American investor to fail.
That is recency bias.
You invest wisely by trying to make the best decisions you can with the information available, stay adaptable, and hope for the best.
There is no point in worrying about things over which you have no control.
Statistics: Posted by protagonist — Thu Mar 21, 2024 10:11 am — Replies 172 — Views 18611