Do you own any stocks or mutual funds? If so, you really should read and ponder this article.
From the Sovereign Man blog:
Lord Overstone said it best. “No warning can save people determined to grow suddenly rich.”
Case in point– CYNK Technology Corp, a listed company that as of this morning has a market capitalization in excess of $1 BILLION.
According to official filings, the social media development company had one employee, no website, no revenue, no product, and no assets.
What has effectively united this company with prudent investors is today’s central banker.
Andy Haldane, the chief economist for the Bank of England, conceded last week that ultra-accommodative monetary policy had “aided and abetted risk-taking” by investors.
But to the central bank, it was worth using higher asset prices to stimulate the economy:
“That is how [monetary policy] is meant to work. That’s why we did it.”
Central bankers, of course, will not be held accountable when the crash finally hits, even if the accumulated dry tinder of the boom was almost entirely of their own creation.
Has the market been good to you in the past few years? You may want to consider—at least consider—taking some of those winnings off the table.
I’m not an investment advisor and I’m not giving investment advice—just sharing my opinion based on what I read in the news and my understanding of economic reality. You will have to make your own decisions. But remember the wisdom of Kenny Rogers, in his song, The Gambler.
“You’ve got to know when to hold ’em
Know when to fold ’em
Know when to walk away
Know when to run”
In an interview with fund manager John Hussman, Professor Robert Shiller summed up the situation in the markets right now: “I am definitely concerned. When was [the cyclically adjusted P/E ratio or CAPE] higher than it is now? I can tell you: 1929, 2000 and 2007.”
Do those years mean anything to you as an investor? If not, you probably shouldn’t be invested in the markets at all. If so, you may want to act… soon.