We’ve had an amazing run in the markets and many people think the bull will just keep on running. Maybe so. But eventually every bull runs out of steam even ones which are fed by the Fed.
Saying this many have predicted a strong downdraft (more than just a correction) in stocks for a long time and it hasn’t happened. So maybe it’s smooth sailing from here on out to the end of time. But I doubt it.
There is a very real possibility that all of the experimentation by the world’s central banks over the last half decade has set us up for an historic economic fall. We are in new territory.
It always pays to be prudent.