What’s your financial THEORY?
The most common question I get asked no matter what the market is doing is “Should I buy right now?” The answer isn’t simple. Most of my responses to this are either questions or lawyer speak. What are you trying to accomplish. What are your short term and long term goals. How do your reserves look? Do you think we are headed into a recession? What is your threshold for risk? What is your financial theory?
The list can go on and on and on. Am I able to provide you with some insight to what the markets are doing and what are some possible short term outcomes with rates and financial industries? Absolutely. But as you’ve heard 100 times, I don’t have a crystal ball and the best I can do is give you some insight to what has historically happened in the past. The fact of the matter is it is going to come down to your financial theory. How do you manage your budget? Are you willing to make some sacrifices? Do you think that we are headed towards a recession and do you believe that recession will slow inflation which will in turn slow and/or reduce interest rates.
The simplest answer is do your homework, ask a ton of questions and don’t rely on one source for your information to make this kind of decision. You should be talking to financial people, you should be reading the news on all sides of the table. You should try to get your hands on historical data to show you trends of what happens in this economic scene. There isn’t a simple answer and rarely is there an answer that is perfectly clear. Go in with your eyes wide open, recognize the possible pitfalls and make sure you have a safety net. There’s always areas in the market for opportunity but you have to find them and do the work.
This is my favorite part of what I do, call me and let’s discuss!