Despite being a somewhat finance related blog, we don’t really write much on financial markets as SippingCoconuts focuses more on the philosophy and thoughts around the pursuit of financial independence. Having said that, WHAT A YEAR it’s been for investing!
WTH is going on in the world?!
Erdogan who believes high rates cause high inflation fires the central bank governer.
Yield curve inversion in many places. There are Euro HY bonds with NEGATIVE rates.
Greece is borrowing at US levels.
POTUS insists on more easing. pic.twitter.com/V8Siq9amUj
— Sipping Coconuts (@SippingCoconuts) July 8, 2019
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Yes, the world seems like it’s gone topsy-turvy but we’ve seen this movie before. People have been speculating and predicting a recession and stock market crash for the past few years yet the animal spirits continue to power on.
The 2009 GFC was supposed to be a generational event and yet many are drawing comparisons between this bull run to that and also to the 2001 internet bubble. Surely, such a deep crash can’t happen again so soon? Or can it?
On top of our WTH list above, Deutsche Bank just announced a major restructuring. 18 THOUSAND jobs are going to be cut. I sure hope many of their employees have a financial cushion they can rely on because a job cut on that scale is gonna take some time to get absorbed by the job market. This further underlines the importance of being financially secure.
Things to ponder:
- Should you stay invested?
- Is passive investing still the way to go?
- What can investors diversify into at this stage?
- Is the 4% safe withdrawal rate sufficiently robust to withstand the lower expected returns going forward? What does this mean for retirees?
- On a more personal note, how much of cash should we hold to ensure that we have enough for our Great Adventure?
So many questions, no clear answers.
Safe investing everyone.
p/s: Oh, I forgot to include the increasing number of loss making companies having their IPOs now into my WTH tweet.
