Douglas Rushkoff thinks that shit is about to go down, economically speaking.
Yes, this is really it. The beginning of a true end-of-cycle economically.
If you own “stocks,” use these bounces to get out completely. If you have to park your money somewhere, consider yourself lucky you have money to park.
I’m not going to discuss whether he’s right or wrong. Time will tell, also I have no idea. I would however, like to add some counter advice. Well, maybe it’s not so much counter advice as it is additional advice.
Let’s pretend that he’s right and the market is about to go down, as in way down. If you own a lot of stock right now then yes, selling would be a good idea.
The rest of his advice, about creating actual value, is good advice in any economic scenario, and I wholeheartedly support it. However, selling now doesn’t mean avoiding stocks forever.
If the markets crash hard, I personally will likely buy like crazy. I’m young. I have a lot of time left. I have money. I have a 401k. If it goes way down, I’m going to increase my 401k contribution to the max I can afford. I might even just get an online trading account and just go for it.
See, I’m in it for the long haul. I’m not even 30 yet. Any investment I make will probably last 40 years plus. Buy low, sell high. That’s the most basic advice in all trading. There’s almost no chance that it will be lower when I retire than it will be if there’s a big dip soon.
It’s almost like a gift. Hey, maybe you didn’t start your 401k as early as you should have. Maybe you didn’t make your contribution large enough. If you have money afterwords, it’s your chance to play catchup.
If you believe Doug, then by all means sell now. But if he’s right, be prepared to buy after the smoke clears.