It Gets Harder From Here

It’s been a good run. If you own risk assets, you’ve probably done very well recently. Outside of shorting things, it would have been difficult to lose money over the past few months.

Take a look at this chart, showing the year-over-year change in the S&P 500*. We’ve had bear markets before, but we’ve never had this type of rally in such a short period of time.

I’m not making a market call, but I am making an ego one. If you feel like this is easy, check yourself. Do not get out over your skis. This has been a favorable environment for stocks and for raising money, and for cryptocurrencies of all shapes and sizes.

So now is probably a good time to do some spring cleaning in your portfolio. I never advocate wholesale changes, but maybe trim some shrubs. In the unlikely event that you have any weeds in your portfolio, rip them out. Winter is always right around the corner in financial markets. The best time to prepare for it is when the sun is shining bright.

*Certain Y/O/Y charts should be taken with a grain of salt, given what we just went through, but I think this one is fair game.

 

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