As 2015 comes to an end – it is a good time to sit back and consider what could go wrong in 2016. Bloomberg has a fun interactive page devoted to this:
- Bloomberg – A Pessimist’s Guide to the World in 2016
Also, with the recent weakness – you would think valuations would start to look attractive – think again:
- Business Insider – OK, you can now officially call me ‘Chicken Little’ — but I still think the sky will fall!
In short – market returns are probably going to stink for the next 10 years. There will be a time during this period to be aggressively long – given the current high valuations, we are not there yet. Money you need to utilize in the next 5 years should not be invested in stock. 10 years is an even better horizon – gives you a Margin of Safety.
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