Protect Yourself. Live Outside The Bubble

Protect Yourself. Live Outside The Bubble

There is a mania hovering over the investment landscape. Bonds. Digital currencies. A large part of the stock market. Certain real estate sectors. All driven to bullish extremes. Priced for perfection. Priced for disappointment.

Someone tweeted. The only thing to fear in the financial markets is the lack of fear itself.

Bullishness seems the only option. Investors, prudent and otherwise, regret past cautiousness. A woulda, coulda, shoulda feeling“¦

In hindsight the past is obvious.

Regret can lead to fear-of-missing-out. Said fear leads to costly investment errors. Think Warren Buffett. What the wise do in the beginning, fools do in the end.

Big challenge for investors right now? Protect yourself. Avoid regret-induced foolishness. Avoid lasting errors.

Repeat a mantra. It is not how much money you make during a bull market, but how much money you keep once the tide turns. Make this your mantra.

Remember. No one regretted prudence going into last March. No fear-of-missing-out when liquidity dried-up and prices crashed. There was only fear itself.

That was last Spring. A time to be greedy. Today, warning signs abound. It is a time to be cautious.

Nearly everything indicates stock indices are overvalued. More so than even in 1999, the previous gold-standard for overvaluation. Only in relation to bonds