World economy

Investing
#1

Hi all,

What are your thoughts about the US economic situation at the moment with the possibilities of it being downgraded due to not being able to pay its debts and negatively affecting the US (and world) economy? Also, the situation at a Evergrande in China doesn’t look promising either for the Asian (and also world) markets.

Is it just a case of riding out the storm and assuming, from the past, it’ll correct itself over time given a long enough time scale? Or doing something else?

Any thoughts??

#2

There have been US and International economic situations and defaults on debt many times over the last 100 years, just take a look at Jeremy’s handy historical chart The Market Goes Up That shows despite things like the Great Depression, the 2007 Financial Crisis, Covid Crash of 2020, it’s all gone up consistently 10%.

I just tell myself that stocks are on sale when it’s a red day. So I buy more if I’m able. It’s not about timing the market, it’s about time IN market. No panic selling!

#3

I would say as you age closer to retirement, your portfolio should reflect more conservative investments rather than being 100% stocks to reduce your risk as you get ready to stop contributing regularly and start regularly withdrawing.