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How to Stop Bumping from Crisis to Crisis

How to Stop Bumping from Crisis to Crisis

Posted On March 29, 2023 9:58 am
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Since the pandemic became an official crisis in early 2020, investors have had to deal with crisis after crisis. There does not seem to be a path toward the next bull market for stocks.

I assume we will have another bull market at some point, but the current crisis-to-crisis investment environment makes strategies that rely on capital gains very unreliable.

But there’s one way to make reliable returns even amid all this craziness. And it’s way less stressful, too.

Let me show you…

Here are some of the events that have shaken investors over the last three years:

  • The shutdown of large swaths of the economy due to the pandemic
  • Massive payments from the government during the pandemic so people could stay home from work
  • A stock market bull market powered by companies—many of which were unprofitable even as their sales soared—benefiting from the stay-at-home phenomenon
  • The bull market fizzles at the start of 2022, when more than 1,000 of the pandemic darling stocks lose over 70% of their values, with many falling by more than 90%
  • Russia’s invasion of Ukraine, and the subsequent sanctions the U.S. and E.U. put on Russia, including cutting off a large portion of Europe’s source of natural gas
  • Soaring crude oil and natural gas prices soared, especially in Europe, where inhabitants saw heating and power bills soar by several hundred percent
  • “Transitory” inflation that turned persistent at levels not seen for 40 years, leading the Federal Reserve—a bit late to the game—to embark on a path of aggressive interest rate increases to try to get inflation under control
  • Ongoing inflation and rising rates crashed bond prices
  • The Russia-Ukraine war stretching into its second year
  • Venture capital companies hearing a rumor about their favorite bank and telling their client companies to withdraw their cash from Silicon Valley Bank, triggering a bank run and a massive drop in the bank and finance-related stock prices

I am afraid to guess what will happen next month…

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