Long term investors are positioning themselves for the long haul so they don't have to pay big Capitol Gains taxes by selling off right now. Other people likely not well positioned will just sell off and get out of the market for now because they cannot afford to wait with that much money invested before it comes back.
I'm not sure it will be as bad as the bottom in 2009 which was:
But, it's important to be realistic now as to whether you can ride out what the market is going to do now that the Fed is seriously going to stop inflation any way it can. Right now the changes are subtle but later this year it will be more extreme than now simply because most people cannot survive this level of inflation if it continues. So, if you are invested in the market are you going to sell off to keep what you can now or be in it for the next 5 or 10 years watching it recover slowly or quickly.
It's important to be realistic no matter what you are doing now so that you can be okay long term with whatever happens.
No comments:
Post a Comment