@buynholdisdead what concerns me is that the 1999 dot-com run-up to the 2000 dot-com bust (which I remember well) was similar to the AI run-up now. The stock market was rising 25% a year while the economy was only growing 2.5% per year. I had a bad feeling about that so I sold in 1999.
The 2007 financial crisis was caused by the housing price bubble which was supported by low interest rates after 2001 and peaked in 2006. The Federal Reserve began to normalize the fed funds rate in 2005 by gradually raising it. The bubble began to burst in 2007 and the crisis hit in 2008.
The situation is familiar – I remember it well. I am retired and Social Security pays for my needs. (Not to mention the income from my bond investments.) That’s why I am taking your advice and not risking the majority of my portfolio in stocks.
Of course, I am very risk-averse. Everyone has a different situation and will make different choices.
Wendy