Sunday, January 1, 2023

Back to Basics

Back to Basics


When all else fails, investors can always go back to basics; own dividend-paying monopolies with powerful, lasting brands across multiple sectors. Save regularly, or better yet religiously, and also keep a healthy stash of seed capital in risk-free U.S. Treasury Bills earning that juicy ~5% interest.

This Bear Market will end as every other bear market ended, when, however is unknown. Some clues will be that the Federal Reserve ends hiking rates, inflation stabilizes or falls, and/or an increasing number of stocks begin to hit new 52-week highs.

The latter point is almost always a sign we have exited a bear market. So for those weary investors beaten to a pulp by bad economic policy and the Fed tightening the screws on you, hang in there. Continue to build positions and keep an eye out for the end of the bear. Until then, it is back to basics and avoid the Risk of Ruin.