{"id":19613,"date":"2020-01-11T04:35:31","date_gmt":"2020-01-11T04:35:31","guid":{"rendered":"https:\/\/thepatientinvestor.com\/?p=19613"},"modified":"2020-01-11T04:35:31","modified_gmt":"2020-01-11T04:35:31","slug":"playing-the-long-game","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2020\/01\/11\/playing-the-long-game\/","title":{"rendered":"Playing the long game"},"content":{"rendered":"

Chart for the Week<\/h2>\n

GDP growth is slowing, while US corporate profits (before tax) are also declining as a percentage of GDP.<\/p>\n

\"Corporate<\/p>\n

Yet the S&P 500 and other major indices are rising, lifted by Fed liquidity injections in the repo market. The red line shows total assets on the Fed’s balance sheet.<\/p>\n

\"S&P<\/p>\n

The Long Game<\/h2>\n

We play the long game \u2014 reducing exposure to equities when market risks are high and staying on the defensive until normality is restored \u2014 even if this means sitting on cash while equities rise. The only alternative, unless you trust your ability to accurately identify exact market tops and bottoms, is to hang on to your positions no matter what happens. But there are few individuals who can withstand the stress and make rational decisions during a major market draw-down.<\/p>\n

Updates for Market Analysis Subscribers<\/h2>\n