How long will the Fed keep rates where they are? Is there another rate hike coming, or will rates start to come down again? In the meantime what’s in store for my portfolio?
The answer or course—to these and many other important questions—is “No one knows.” That doesn’t mean we shouldn’t ask the questions, shouldn’t think about how portfolios are constructed.
Because while we don’t know exactly what the answers are, the questions can move us toward productive behaviors that work well in such uncertain times: Reducing spending to introduce more cashflow margin in your life, continuing to buy into a diversified portfolio especially when assets are trading down (if still saving), and committing to patience over panic.
These are behaviors, by the way, that always work. It’s just that they become more important in weird times, because they help keep us from all the destructive behaviors that we are tempted by and cajoled into by fear and greed mongers.
What you feel is real. Just remember what works, works.
Meaningful Returns 