It took so many people so long to see the light (or better put, darkness) of October.
I'm seeing a lot more people posting articles like the attached. Rough times are getting closer and closer. Being prepared for rough times in the equity markets is critical to staying to "play another day".
We've already seen a huge drop in P/E ratios which means market participants are becoming much less sanguine on the future of earnings. Add in that interest rates have risen at a velocity unseen in modern times and we're in serious trouble.
The next shoe to drop with be the fall off of earnings. We just about to begin earnings season - expect ugliness.
Much of this could be seen from the context of history. That context is not formulaic, so don't expect some AI program to pick it up. Like in a court of law, it is the preponderance of evidence. A lot of economic events are foreshadowing difficult times.
Am I running from equities? Certainly not! But I am prepared, both strategic positioning wise and psychologically, for even a 20% further drop. Now is the time to bunker down and, if inclined, add to positions. Adding to positions is tough at this point from a psychological viewpoint. Only do so if you have thoroughly evaluated the stock from multiple vantages. Buying a stock in a down trend and seeing if drop even harder is tough to take. If you have evaluated it in detail, you should have the confidence to continue to buy as the drop continues.
Expect tough times ahead, but keep grounded with significant analysis, quality companies and mental fortitude.
The sun always sets. It also rises again. Make sure you're positioned for a beautiful sun rise. It will come, but right now, darkness rules!
Be smart, be well-read, be aware and be successful.
