by Charles Hugh Smith
Of Two Minds
History suggests being wary of the “strong buys” at $45 when the eventual bottom is $4.
In response to my chart-fest post The Rollercoaster Ride Ahead: 15 Years of Extreme Distortions Will Be Unwound, readers asked: OK, so what can I do in response? That’s the right question, for passively awaiting the wave to wash over us and then scrambling for higher ground is a high-risk strategy.
Let’s start with three stipulations: 1) this is not investment advice; everything here is an observation based on history or my personal experiences after previous bubbles have popped; 2) there are no easy answers–none, and 3) my last three books can be viewed as a trilogy describing macro and individual responses to the Great Unwinding. I’ll post links to the free chapters at the end of this post. The point being that I’ve pondered this question for many years.