As you say, those holdings reduce your risk when viewed in context of
the next bear market in stocks.
Not exact matches
It's easy to put it
in the back of your mind when it seems like all
stocks do is rise but it's a question of when, not if, the
next bear market will hit.
Right now, a fourth secular
bear market cycle is emerging
in the
stock markets, which may last over the
next seven to ten years.
HOWEVER, we are watching for any signs of sustained weakness
in the data because the
next recession will lead to a
bear market in stocks (e.g. 40 % + decline).
Juicy Excerpt: Say that it takes three years for the
next crash to take place and that that crash will bring
stock prices down 65 percent from where they are today, down to the P / E10 level of 8 that has applied at the bottom of every major
bear market we have seen
in U.S. history.