I’m not staying out forever
The problem is the timing of your re-entry - how do you pick the bottom just right and if you miss it when do you re-enter? If it shoots back up over a couple days, you will feel like you missed the big sale and may end up sitting on the sidelines earning 0.7% on a stink'en 10 year t-bill, while the market continues up.
And Krugman is the smartest economist out there. He knows what he’s talking about!
Yikes to this statement. No economist is right all the time but PK is not very good at predictions, here's a few...
In Nov-2016 he said the markets would never recover from the election results - the markets continued higher until the virus issues.
In 2017 he said we would never see 3% GDP again - 2017 & 18 saw +3% growth
He predicted a recession would have hit by 2020 - corona could make this one come true but without it, no way.
There's also this classic - "By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.” Paul Krugman quote from 1998.
Heck, even he admitted he's not very good at predictions of recessions and markets “By the way, my track record for this is bad—as is everybody’s. No one is good at calling these turning points.”
Please don't base your investment strategy on these guys lame predictions!
