The market has recently experienced a significant bull run, driven by a variety of factors, including investor optimism sparked by political shifts, particularly the election of Donald Trump as president. His policies, particularly around a business-friendly environment, have contributed to a surge in investor confidence. This has led to widespread enthusiasm, driving market growth and pushing stocks to new highs. However, despite the current bullish climate, it’s important to remain aware of the risks that come with such an environment.
While the market has been strong, I’m taking a more cautious approach and preparing for the possibility of a bear market. The economic cycles are unpredictable, and after periods of growth, corrections or downturns are often inevitable. With that in mind, I’m adjusting my strategy to be more defensive. I’m focusing on increasing my holdings in safer, low-risk investments like Treasury bond ETFs and money market funds, which tend to provide stability in times of market volatility.
Rather than getting swept up in the current optimism, I believe it’s wiser to err on the side of caution. The saying "better safe than sorry" resonates now more than ever. By making these adjustments, I’m positioning myself to be better prepared for any market shifts that may occur, ensuring I’m not caught off guard if the bull market eventually gives way to a downturn.
Comments