A colleague of mine once said that he hated stinking thinking, referring to the poor ideas generated during creative problem solving sessions. While I do agree with him, I think there is a worse kind of stinking thinking, ignoring facts and reality and proceeding in spite of them. Unless one has been living in a cave, there has been a lot of stinking thinking over the past 18 months. Here are some of the one's I consider most egregious:
Of course, I don't expect the government's course to change much in the near future. Thus, I believe the economy and the stock market will continue to be stagnant and choppy for the next few months. Eventually, I also expect inflation to come roaring back within a couple years. Based on this scenario, we sold off 20% of our stock investments last week, in anticipation of a market decline. In addition, we will start putting more funds into TIPS (Treasury Inflation Protected Securities) bonds as a hedge against inflation.
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This is not financial or economic advice. Please consult a professional advisor.
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