Former Republican congressman and presidential candidate Ron Paul has been very vocal over the last few days regarding his bearish stance on the US economy, US stock markets and distrust of Donald Trump. While Ron Paul is a renowned bear of the US stock market even his suggestion that it “wouldn’t be a total shock to me” to see stock markets down 25% and gold up 50% as soon October is a little too bearish. While nobody else is forecasting that kind of correction it has made some investors sit up and listen and re-evaluate their plans for the future. Read full article here
We'll eventually see future corrections and the occasional bear markets. Sooner or later those who constantly predict gloom will be right. When, how much, and how long are much harder to get right. I have long stock positions, short positions, and gold all in my portfolio. I typically have 8-10 times as much money in long stock positions as I do in either gold or short positions. I may double up on GLD and have more cash and puts / shorts than normal from time to time, but I've learned that a portfolio that is pretty well balanced that accounts for the upside market bias is best for most times.
Totally agree - if you call the doom and gloom scenario often enough you will be right at some point. If you are a long term investor then a balanced portfolio is also a must - nobody knows what will happen tomorrow let alone next week or next year!
