This is something I’ve been thinking about the last 12 months regarding the stock market. All the news every few weeks about sell offs, markets crashing, war, AI bubble; seem to keep getting spun around and reposted far too often.
However at some point, as history shows us, it will eventually happen and the market will be in an extended period of losses.
I remember when the Dow hit 50k earlier this yr, the market went down, claiming bubble bursting and whatnot, but even a few months after that the Dow is even higher now.
For those not familiar, hot hand fallacy is the belief that what is currently happening will continue to happen (i.e a basketball player with a hot hand making all his shots will continue to make all of his shots).
We definitely see some stocks where they’re absolutely down for the year, corrections have happened, but not in a grand global scale.
As a risk tolerant investor that tries to remove emotion from investing decisions, I’m curious to hear some thoughts from other folks on when you think a macro correction period would likely occur and what your strategies (not financial advice) may be.
I wasn’t investing during the ‘07 crash, so I have no experience in dealing with potential worst case scenarios, so any insight would be appreciated from first hand accounts on what you are doing to best protect yourselves.