When interest rates are low, the dollar is weak, bond prices are high, stocks are rising and gold is soaring. Investing tends to be perplexing. Making choices becomes tougher with every passing day. The issue becomes complex as asset inflation seems elastic, demand seems persistent, and prices seem infallible.
It is during such surreal situations that one’s core character is tested. The ability to control greed, calibrate participation, and say no to risk becomes paramount. This phase can make one look silly in the near term. We may say no to some assets which may see bubble type valuations after we walk away. Such situations normally create uncontrollable FOMO (fear of missing out). Most people tend to go all-in, only to find themselves stranded.
The coming months may well see such a setting emerge. Preparing for such a setting is essential. Time is the essence and preparation is the need of the hour. The current economic mosaic is likely to be “never before, never after” setting. What we do now, will impact our wealth creation for a very long time to come.