It's been ten years since the big recession. It may still hurt like it is a wound from yesterday, but a decade separates us from the last major market drop.
Now, we sit on top of the market again. Is it time to brace for a catastrophic global recession?
Well, the big drop isn't actually as concerning as another danger that you need to focus on: peace.
There Is Incredible Danger In The Current Financial Peace You May Be Experiencing
The danger today is different than in 2008. We don't appear to be walking toward global recession (even though we didn't feel that way in 2007 either... stay with me.).
"The danger is that investors are complacent to an extraordinary degree - lulled into a false sense of security by the extraordinarily calm markets. There is no margin of error. And, if the investors turn out to be wrong, it will be a nasty shock."
- James Mackintosh
Today's Financial Snapshot
- Measures of volatility are at historic lows.
- Inflation is historically low.
- Economists are baffled by everything doing so well.
- Profit margins are high.
- Everything looks pretty good.
And that reality is troublesome... why? Namely, because it is subtle and offers a false sense of security and safety.
Let's Say A "Normal" Market Correction Occurs
It is possible that a 20% drop today could be just as devastating as the major drop in 2008 if you've been lulled into complacency.
Some of you, especially those nearing retirement, need to evaluate your level of risk. How will your portfolio handle a typical correction?
I believe the possible gain of staying aggressive in the market is overshadowed by the amount of risk in one market drop. this could change the next 20 years of your life.
If you are anywhere close to retirement the #1 risk is that you can be lulled into a false sense of security.
We know the market will drop. If you're 35 it's okay, and it actually creates opportunity. But if you are within 10 - 15 years of retirement and everything has worked well recently, you need to evaluate what will happen if and when a correction occurs.
It's Time to Wake Up From The Lull of Peace!
If you want to ask a question about your specific situation and measure the risk in your portfolio, we can measure if you are at the correct level for your amount of retirement preparation.
There are concrete changes you can make to prepare for drops and stay on track for your retirement. It's how we walk customers from hopeful anxiety to peacefully confident.
Don't let the market acting NORMAL throw off your future. Fight back against peace. It's extremely dangerous to your future.