What’s a ‘mature investor’ to do to help protect themselves from this eventuality?
| Dear Reader, When the next ‘reversion to the mean’ happens in the markets, tech stocks could fall first and the hardest. And the wider indexes will follow. Many stocks the world over that are considered ‘good long-term investments’ could fall 30–50%. That’s not my prediction. It comes from my colleagues Bill Bonner and Dan Denning. They’re calling it ‘The Big Loss’. ‘Even if a stock were reasonably priced,’ says Bill, ‘it could stay in the “loss” column for a long time. ’ ‘There’s no guarantee that the stock market will bounce back, as it did in 2009 and 2020. ‘Our guess…is that the next stock market crisis will be followed by another big “stimulus” push…which will probably lead to another flourish in the stock market. ‘But later, stock prices are unlikely to keep up with consumer price inflation. If history is any guide, stocks could lose three-fourths of their real value, as they did in the 1970s.’ What’s a ‘mature investor’ to do to help protect themselves from this eventuality? Find out here. Regards, Greg Canavan,
Head of Research, Fat Tail Investment Research |
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