So this is a very volatile time in the markets right now – my investment portfolio tells me that. In just a short several years, I’ve seen the tech boom (and bust), the run-up of hedge funds then private equity, the age of mega leveraged buyouts, the real estate explosion, and now… the fallout.
At first I was under the impression that these cycles of boom-then-bust are something confined to the 1990s… yeah, how generation-centric of me, right? 😉 Then I read A Random Walk Down Wall Street. There it is: booms & busts are NOTHING new. Sure, the vehicles may change, but the fundamentals don’t.
Hegel said: “We learn from history that men learn nothing from history.”
Buffett said: ““Be fearful when others are greedy and greedy when others are fearful.”
If you are (a) supremely confident of your ability to pick the next Google or that you have a broker who does OR (b) if you are taking all your money out because you’re certain that the market will crash & burn – just think about those two sayings.
As for me? I have some bonds and a whole lot of stocks, and I’m sitting pretty on my (small but growing) pile. I’m in it for the long haul, baby.