For t -> ∞, a prediction that the stock market will correct in the future will always hold true.
The question is, will it correct to levels below its current ones? If you have an answer to that, you can make a lot of money.
The question is, will it correct to levels below its current ones? If you have an answer to that, you can make a lot of money.
If you stayed in through 2008 till now, you'd be doing perfectly fine. If you had to take out money right after the collapse, ouch.
Ultimately your portfolio risk should reflect the cash needs of your age/health/lifestyle in the context of the economics of the time. However, we are in uncharted waters.
I'll take a punt. At some point inflation will take root, and when it does the fed will be in a bind.
Hell, the fed has already been digging away at pensions with their 40 year long put. Pensions funds struggle now to find a positive yield that meets their liabilities.
And homes will at some point come under attack. Perhaps only when everything else is gone, perhaps not. They're a sitting target.