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"As I type this, mainstream financial news sites and their You Tube channels are flooded with predictions of DEPRESSION NOW, 40% DROP SOON, etc, etc. These predictions come from very well-known and prestigious authors, fund managers, etc. So - what do you make of this? how can you invest in the face of these messages?


Do not invest funds you need to live on in the next 5 years.
Do "due diligence" on firms before investing in them. Watch out for excessive
debt, payouts that exceed the ability of the firm to pay without borrowing funds, etc.
Try to avoid "falling in love" with a story, a market, an industry.
Try to avoid buying a "falling knife" or a "dead cat bounce" - keep your eye on the
fundamentals - recognizing that some industries will take years to recover.

Basically, remember that the press is paid by the click. Disaster stories will accumulate
more clocks than "we might just survive." stories.

Also, remember that should the economy drop - the drop will impact everyone for the most part
and will also impact all sectors. The market is both efficient and inefficient - there are
always opportunities. While the market routinely makes mistakes in valuation - the market also
can continue to make mistakes for a lot longer than you can stay afloat if you are an individual
investor. So, that "due diligence" thingy is really an important thing to do.
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