You Alarmed Me!

Hey Scott,

A bit confused about your column ‘Financial Markets Are a Dog’s Breakfast’. Are you saying the stock market is a farce and will fail due to all the extra money printing and zero interest rates? I am a big-time Barefooter who is heavily investing in stocks right now, so would you please explain what you mean?

Harriet

Hi Harriet,

Let me say this right up front: I’m still invested in the share market, and I don’t plan on ever selling.

What I was referring to last week was the frothy end of the market — like Dogecoin. The fact is that money-printing and low interest rates are driving up the prices of everything, and some of that is spilling over to crazy stuff like Dogecoin.

Look, there’s a lot of easy money being made right now (which explains why almost every 22-year-old kid I meet these days seems to be an investment guru.)

Yet history tells me these things don’t last.

So what should you do?

Well, you could follow my lead and do nothing.

As I explain in my book, you should think of your share portfolio like a little apple tree. You’ve planted it. There’s no need to move it, or worry about it. Just leave it to do its thing. And in 20 or 30 years’ time, just like an apple tree, it will produce amazing apples that will feed you and your grandkids.

Finally, to your question: the stock market is not a farce. Over the long term the riskiest thing you can do with the share market … is to not invest in it.

Because at the end of the day, Harriet, she’ll be apples!

Scott.