The Most Dangerous Market Conditions & How to Protect Yourself

There is no denying that investment markets experienced a meteoric rise from the lows of a year ago. Few would have been able to forecast such a speedy recovery following the dramatic selling spurred by government imposed cessation of economic activities. While this rapid recovery in capital markets is good in the short term, most investors recognize the presence of negative implications that may surface as time goes on. Unfortunately, there may be far greater risks present now, that most investors are overlooking. In this episode of the Carriage House Planning Report, we explore why we are currently in the midst of the most dangerous market conditions for individual investors (hint: it has far less to do with the markets and much more to do with our own minds and behavior), but we also offer suggestions for how you can avoid falling prey to the dangerous conditions at hand.

Referenced in today’s episode:

M2 Money Stock

Cash and checking deposits (M1) + money market securities, mutual funds, and other time deposits (“near money”)