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The Bull vs. The Bear

Last update on: Mar 15 2020

It’s rare there’s a day with the stark contrast we saw yesterday. In the April issue of Retirement Watch, I remarked that I don’t recall see such a sharp divide between those who are optimistic and pessimistic about the stock markets. We saw that clearly yesterday.

First, Goldman Sachs came out with a report arguing that stocks were very cheap and investors should buy them immediately and not worry about the potential for a short-term correction. Goldman argues that stocks are cheap, especially relative to bonds, and that we’re about to enter a period of strong growth.

Second, Albert Edwards of Societe Generale took the opposite position. He’s looking for a repeat of 2011, when the year started off well and then transitioned into a sharp economic and market decline. He’s worried about falling corporate profits, slow growth in China, too much optimism, and other factors.

It’s worth noting that the Goldman report makes a longer-term case, while Edwards is setting policy for the rest of this year. It’s easy to make a case for either extreme. That’s why I’ve been recommending portfolios with true diversification and sell signals under select assets.


December 2021:
Congress Comes for your Retirement Money
A devastating new law has just been enacted, with serious consequences for anyone holding an IRA, pension, or 401(k). Fortunately, there are still steps you can take to sidestep Congress, starting with this ONE SIMPLE MOVE.

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