By far the most common question I get asked these days is “what is next?”. Many times, it starts like this: “Chris, I know you don’t have a crystal ball, but…..” Actually, I do have a crystal ball! Chris Lee gave me one years ago. It’s on a shelf in my office. Unfortunately, it doesn’t tell me what is going to happen next. It does not flash red at the top of the market telling me to get out before a market correction. Just as important, it does not have bells and whistles going off at the bottom of the market letting me know to be fully invested. Maybe I should check the return policy since it may be defective!
Luckily for you, at New England Capital, we prefer proper planning over prognostication. When I hear all the predictions coming from “experts” this time of year I’m reminded of economist, John Kenneth Galbraith’s quote: “The only function of economic forecasting is to make astrology look respectable”. For clues as to what might be ahead, let’s look at how we got to where we are today.
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