A very knowledgeable and academically astute mate of mine who likes to debate various topics from early in the morning till late at night has been telling me that it is not time (not just yet) to invest in stocks. He has been telling me this since 1998 when TLS joined the market. A bust is coming according to him. We are about to enter into a major apocalyptic anarchy where we will be controlled and enslaved etc. etc.
Should I mention that he NEVER EVER has invested in a single stock regardless of the quality and timing. According to him, there is no certainty in the market and the ultimate reason why he never invested is - he does not have a total and complete control over his investment(s) if he does.
Since then, we had a number of boom and bust periods, however, we are still here. Had I listened to him and never invested I would have been employed (hopefully full time) and would have been working a 9-5 job. Since 1992 I have not worked full or part time for anyone.
Since then, I bought a number of investment properties from the profit I made trading stocks. He still lives in the same old house he inherited and is living of a couple of hundred dollars a week.
Is another bust near? Perhaps. Will everything turn into dust? Yeah, like always (not). If one trades on daily basis why one would worry if the end of days is about to happen or will happen in 5 or 20 years? IMO, I would only focus on today's trading session. The rest is almost irrelevant.
However, if the markets go off the cliff, I wonder how many true bears will be shorting stocks if this kind of apocalyptic event really happens?
Personally, I do not think many will or would. It is not in financial interest of any one of us to live through such an event. I am sure all the governments around the world will try to contain such a situation. Will they succeed? I do not know but I know we will be still around.
I am sure my mate too will be around for next 20-30 years to witness what is going to happen in the financial markets, and I guess only when he is old and dying he will perhaps say - I should have....
Or maybe it will be me who will say - I should have :)
Until then - buy / sell continues.
I am about to squeeze 20 cents in STO! I could not care less if the US banks have or do not have a single penny :)
(20min delay)