The Only Thing Worth Knowing Right Now

Let me save you dozens of hours of television watching and thousands of paragraphs worth of reading as summer winds down to a close…

There is only one important reality to understand this fall, just a single tug-of-war to be aware of that should guide how you allocate your precious time and capital for the next three months.  This fight is not inflation versus deflation, nor is it Republican versus Democrat.

No, the Only Thing Worth Knowing right now is this:

Stocks are inexpensive and the economy is worsening

You will read hundreds of articles quantifying how cheap stocks are and the fact that seasonality is on the side of the bulls.  You will also read hundreds of articles about how the economy is deteriorating and taking the corporate profit picture with it.  These two incontrovertible facts are both true and will probably remain true for the foreseeable future.  The only question you need to ask yourself is which of these two opposing forces will push or pull more on your portfolio the way it’s currently structured.

I know how I want to be set up for this environment, what’s your plan?