In case anyone is interested, I moved some money out of money markets into the S&P 500 today. Not all the way back in…but part of the way. (My last market move was in mid-december, when I moved about half my portfolio out of stocks.)
My reasoning is that the size of the debt problem is enormous but finite…I’ve been estimating roughly $3 trillion for the U.S., with a somewhat larger global number. Investors have seen roughly a trillion dollars in write-offs, the government has pumped in roughly a trillion dollars in bailout money, and the market is pricing in a recession which will cut back consumer spending by about a trillion.
So even if the market and the economy keeps going down for a while (including today!), this strikes me as a good time to invest.
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