Dr H posted a recap of the tough questions whose lack of answers are behind my risk aversion with current investment landscape. He summarizes as, quote “What does economic reality look like in the post-COVID world?”
He quotes Aleksandar Kocic for a bit of color first, quote: Questions like which businesses would survive the crisis, how many people will lose their jobs permanently, how will they pay their rent, how much will they be willing to travel, consume, what services will they use, or how the banking sector will respond to all of that, still remain largely out of grasp.
Investors without answers to those questions are traders … not that there’s anything wrong with it. But, know what you’re doing – pretending will be painful.