If you’re invested in stocks, be careful

Commentators and analysts far and wide are advising extreme caution in the financial markets.  There is no single answer that will likely work well over the entire period of financial problems.  Obviously, this is not the time to sit back and relax; this is the time to stay alert and pay attention.  You will no doubt need to adjust your strategy as time passes.  Here’s a chart many are using to illustrate what happened to stock market investors during the Great Depression: after the initial stock market decline, many bought at what they thought was the bottom, and indeed made big money on the rebound (in modern parlance, the “dead cat bounce”).  But note what happened next:

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