Last weekend I made a reflective video after a wild week politically, and in the stock markets.
The video is available below with timings of the key points
- 00:45 – Nobody can predict the future…..and yet everybody loves to say they can. I have yet to meet somebody who can always predict elections and the stock market.
- 2:01 – There has been a big difference between those people who think this is a great time to buy and those that are afraid
- 2:46 – The political blame game might begin when markets fully recover, as they always have historically. People are likely to say that “the rich” benefitted from these lower valuations and took advantage of it.
- 4:02– Having bonds in your portfolio is important even though they don’t beat stocks long-term. They have been the true safe heavens….short-term treasury bonds at least.
- 4:59 – The crisis again shows that gold isn’t a safe heaven. The price of gold went down during the worst of this crisis just like in 2008-2009.
- 6:18 – Bitcoin is also not a safe heaven
- 7:13 – Many people focus on the wrong types of risk. In particular, countless people didn’t change their business models until it was too late. Many businesses could have gone online sooner, but didn’t factor in “black swan” events.
With stock markets up by 20% in three days, this week seems to be an equally crazy time for the markets.