What will we do next? 2


If you have not read the article "What will we do next? 1" beforehand please read it before This article

Here I will write Future Economic scenarios which are possibly predictable and how to cope with those situations.


  1. The economy will crash without any sign or omen.
    I think this is unlikely. Although the world economy has been unhealthy, investors worldwide seem to be very wise. They appear not to buy stocks without any positive market information. The economy seems unwell because central banks have been trying to stimulate their economy with almost total power. But thanks to calm investors, the stock market has been pretty stable and waiting for innovations to come out. If the economy crashes soon, many things in the economy are wrong, which is, I think, very unlikely.
    What is more, we just experienced "One in a hundred-year economic disaster" in 2008, which is 11 years ago, and we will not likely experience the kind of thing again.
    In this case, you need cash to sell stocks and Gold and buy Government bonds of developed countries. It is also theoretically good to have short positions on the stock market in that situation even after your notice that the crash already happened because a downtrend is sticky and long in general, but almost everyone becomes emotional. The market becomes a dangerous place to get in, so it should not be recommended.
  2. We will experience the bubble and then the crash. 
    That seems most likely because the market appears to be ready for skyrocketing if there is a tremendous innovation. After all, there is theoretically plenty of money everywhere in the market waiting for the investment.
    You have to be careful of the bubble because there always is depression after a flourishing period of the economy. Strong inflation will likely happen in this situation, so buying stocks and Gold would be an excellent option. It is also ok to only buy stocks if you follow Warren Buffet's approach.
  3. The world economy is fine and will continue to grow steadily.Although we have political problems which can affect the economy, like the U.S. - China trade war and Brexit, I think we can expect a flourishing economy after overcoming those issues. We have still growing sectors such as AI technology, auto-piloted vehicle and Robot technology. Therefore, I can easily conclude that the economy will succeed sooner or later.
  4. Something else.


In conclusion, I think it is an excellent option to buy some of the stocks or, as a safer option, some index funds from the U.S and Germany.


*I noticed that what I usually write is logically fucked up all the time. I will work on fixing it. Sorry about that.

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