Martin Pelletier: This is one mistake I promised myself I would not make again regardless of what segment of the market it is in. Read on.
We’re all now looking at the carnage caused over the past nine months, a time when stocks and bonds have gone down together in a magnitude that hasn’t happened since the 1930s.
Taking it a step further, central banks are doing the exact same thing by making excuses for their actions that got them in the mess they’re in today. They were slow to raise rates to temper the surge in spending following the lockdowns and now they risk overreacting by hiking rates too fast, too high in a desperate attempt to catch up.
Instead of trying to make up for what happened in the past, why not try to take a step back, realize mistakes were made, identify where you went wrong, don’t be held hostage by it and move on? Leave the past in the past and focus on doing the right thing in the present.