As the markets take a big hit today, I believe these are the signs of the much anticipated downturn that we have been discussing on our blog. It is obvious that we are in the economic stage known as the "peak", and the economic downturn is ahead of us.
What is important to note is that stocks move in anticipation of these cycles, so now is the time to sell, not when the recession is here. In fact, many studies show that bear markets have been well under way by the time a "recession" is announced. Therefore, I suggest investing in "cheap" stocks and staying away from any stocks with a high multiple and one that relies on a good economy to make money.
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