Daily, I read economic data and opinions from bulls and bears. While nobody can ever predict or time the market, sometimes, you can get a feeling to hold on to your cash and keep your powder dry.
Of course, if you own good companies, just stay the course and have the stomach for 50% drops. If you don’t have the stomach for that, you should not be investing. Period.
Here’s why: Shrinking profit margins will almost surely cause stock investors pain. Even under optimistic assumptions, it’s hard to see how those lower margins will allow the stock market to produce annualized returns from until now 2020 higher than in the low single-digits. Under more realistic assumptions, the market will do much worse.
Read Full Story: This hidden risk will likely sabotage the stock market – MarketWatch