I hope not. If the market is more volatile like this, and it's a long term trend, money will probably move out of stocks and that'd be real, real bad. For everyone and everything.
In volatile markets, sitting on cash isn’t a strategy—capital must be deployed somewhere, even in uncertain times.
Crypto? Not exactly stable historically. Could evaporate at any time and IMO will go the way of tulip bulbs.
Gold? Many might agree and in an unstable market many will choose this route. However, gold also has drawbacks - it generates no income, has storage costs, and its price can be just as erratic as stocks during turbulent periods.
Bonds? They offer stability and income, but low yields in certain environments (like today’s) may not outpace inflation. Plus, rising interest rates can erode their value, making them less "safe" than assumed.
I’ll always bet on productive assets like equities and real estate. Well-run companies adapt to economic shifts, and high-quality real estate in growing markets has a proven track record of long-term appreciation. Dividend-paying stocks, in particular, provide steady income during downturns, cushioning volatility while you await recovery.
The key is diversification and a long-term perspective. Volatility creates opportunities for disciplined investors to buy undervalued assets. A balanced portfolio—emphasizing equities, real estate, and selective fixed-income instruments—has historically outperformed market-timing or over-reliance on safe havens.
Markets have endured depressions, wars, and crises. Today’s volatility, while unsettling, is par for the course. Patience, diversification, and a focus on productive assets remain the investor’s best tools.