Timing the market is about as easy as translating Joe Biden’s teleprompter.
Humans have an innate need to make predictions, so we have horse races, stockbrokers, and psychics. However, we never get it right, and when someone finally does, they get heralded as a person with magnificent insight. The reality is that randomness exists, and nobody knows what the future holds for us other than Marty McFly.
Yet, the question ever on our minds: “Where is the market going?”
I, like economists and psychics, have my thoughts.
Using history in a feeble attempt to make a prediction, I would say that the strength of the US Dollar will decline rapidly, causing middle-class families and small businesses to falter. It will have a butterfly effect on the rest of the economy. We will witness many foreclosures, with Florida and California leading the way.
While the signs point to a grizzly bear market coming soon, we have some saving graces.
I discussed this with a good friend who said, “we need another advent as great as the internet.” He is right, and although it may not stop the storm, it can provide some shelter.
Here at The Outlier Group, we spend multiple hours working in the Metaverse and Virtual Reality space to see what the future might hold. It is astonishing and will undoubtedly change our everyday lives, similar to the way the internet and smartphones shifted our day-to-day living.
As Marty McFly said in Back to the Future, “I guess you guys aren’t ready for that, yet. But your kids are gonna love it.”
As far as real estate is concerned, “buy low and hold long.” If you buy right and weather the storm, you will be just fine. And since we shouldn’t rely on brokers and economists to paint the picture, I recommend treating investing as a science, not a gamble. Instead, use your Broker for their expertise in the industry, not for predictions of it.
“Far more money has been lost by investors trying to anticipate corrections, then lost in the corrections themselves.” —Peter Lynch
I leave you with this compilation of wisdom from great investors.