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Sunday, March 28, 2021

Tail Risks Growing

The S&P closed at an all time high on Friday.  

However, there are a growing number of tail risks that could cause the market to decline significantly:
  • Suez Canal blockage
  • Margin Calls, e.g. Achegos Capital this week
  • SPACs
  • Interest rate increase
  • Higher tax rates
  • Increasing Government Deficit
  • New COVID risks
  • Unknowns
Stock will keep going up, until they don't.   It's time to be caution:  take some profits, raise cash and be ready to buy low.

For more on New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

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