Here’s how to hedge this. Here’s how to hedge that. Here’s how to remain in the fetal position with your portfolio. Here’s how

How To Prepare For a Lengthy Bull Market

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2021-06-21 23:30:04

Here’s how to hedge this. Here’s how to hedge that. Here’s how to remain in the fetal position with your portfolio. Here’s how to prepare for Armageddon (just in case).

There were plenty of investors who weren’t prepared for one of the worst crashes in history. I’ve spilled plenty of ink myself when it comes to preparing for a correction or crash.

And while it’s always a worthwhile endeavor as an investor to hope for the best but prepare for the worst, that fetal position mindset can be detrimental if you’re unwilling to accept some risk.

There has never been a risk-free way to earn solid returns in the markets, but that’s more true than ever today with rates where they are.

Yeah, that’s right, I said it. I know valuations are high. I know the U.S. stock market has been positive 11 out of the past 12 years. I know the past 15 months or so have been a crazy orgy of excess and speculation in certain parts of the market.

Consider the U.S. stock market returned 15.5% annually from 1942-1965. That’s 24 years of above-average gains. Or how about the 17.7% returns over the 20-year stretch from 1980-1999.1

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