Why we did not post: Things to Watch 2020
Updated: Jan 1
We have been watching the market for more than ten years since 2008. We knew that there will be a cyclical correction, but we did not knew what that correction will be entailed. We do not think that the global pandemic was a correction, it is more of a stress test on the global economy and leadership. Businesses and governments across the globe was able to work together, as both parties understood that the inability to work together will comprise of a deep economic recession. We believe that the market correction is not from the global pandemic, but may be in something else. Asset appreciation through a massive increase of trader participation in the market will be the cause of it. Whether it is an individual stock or an index fund. Psychological strength must be harnessed. When younger, inexperience, traders participate, they must have the stomach to look at the downturn as an investment opportunity and not exit and sell their positions. Basic economics still exists and we have to continuously remember that.
In terms of the next market correction we will post on Things to watch 2021.
Lessons we hope society learned in 2020:
- We should not politicize science and facts
- The global pandemic is an hard but easy problem that can be solved with time
- A lot of the price pressure are driven by political and policy risks, not business or market operations
Stay safe and hope everyone will have an awesome new year!