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Should You Sell Your Stocks?
The Evergrande Debacle Is Coming
Evergrande is a sinking ship. Initial reported claimed the company defaulted, but Evergrande has been making last-second payments to meet deadlines. These payment deadlines will continue coming. At some point, the house of cards will likely tumble all over investors.
An Evergrande default isn’t the only issue we face today. We’ve also got a significant inflation problem that isn’t ‘transitory’ as the Fed suggested months ago. Pretty lies are easier to digest than unpleasant truths. Inflation crushes the future value of money, an essential component of lofty valuations.
Anytime a crisis looms, investors ask themselves if they should sell their stocks. It’s never an easy question. Selling stocks helps if a crash happens, but you miss out on the potential upside. Some stocks continue to rise before the crash takes place. By the time the crash takes place, the stocks have already significantly appreciated.
Since we’ve also got inflation issues, your liquid cash is guaranteed to lose value over time. While this has always been the case, inflation has considerably accelerated in recent months. If you’re wondering if now is the time to sell, here are some things to keep in mind.
