How to Invest in a Super Bubble Super Bubble is an old idea. The News people say we very well may be in, near, or around the Super Bubble level. We've definitely seen Super Bubble activity in the Stock Market in several sectors. Before you reach for your mouse to make your next trade, let me share a few thoughts, ideas, and strategies to help you Make Your Money Count in this Super Bubble season.

Jeremy Grantham has been broadcasting what investors should own when the super bubble pops. I'd like to help you see both sides of the Super Bubble so that you can have a better chance of making money when the market soars, sinks, or just floats along while the super bubble inflates over time.

Grantham the guru says holding cash, avoiding US stocks, and bargain hunting in emerging markets is the name of the Super Bubble game. Grantham is right about owning high-quality US stocks that can weather serious market downturns like the one we're in this month, February 2022.

Grantham has predicted that the US is in our 4th super bubble of the past hundred years. His warning is that the S&P 500 will crash over 40% to around 2,500 after the super bubble pops. But timing is a tricky piece of business when you're playng with Mr. Market.

Jeremy Grantham has a lot more experience than I do and far be it from me to pretend that I have a better strategy for making money than the veteran investor and GMO cofounder. But I do know that one thing he's not saying is a lot more critical than anything I've heard him say so far...

3 Things To Do Now

• Create a compelling Financial Plan
• Review your investment portfolio
• Learn how to Make Your Money Count 

Let's Make a Plan

Buy Low, Sell High, and Make Your Money Count every step of the way. Investment management is certainly important but if you don't have a well defined, and well-coordinated financial plan, your chances of success will be severely limited. With a good, up to date, well coordinated financial plan, you can make mistakes in your investment portfolio and still maintain a very high probablity of success.

RiskAlyze Your Investments

You can invest a lot of time and energy trying to hedge your portfolio against a series of historic market bubbles. Be carefully aware of the daily frenzy of media noise makers and their agenda of selling their news. Yes, the Super Bubble that may get popped by Putin's invasion of Ukraine. But before we go 100% to cash -- or worst jump into Gold, let's take a closer look at a few of the tools and strategies we have available to manage risk - and opportunity.

You always need some cash reserves because when the Super Bubble busts, there will be some great buying opportunities. 

Owning a small amount of gold and silver in your portfolio is great, but today's more likely the day to take some profit. Today would not be the day to buy gold or silver IMO.

Grantham thinks its time to start avoiding US stocks. What do you think? Or, what do you think I think? I think we might want to look at a chart of two. I agree with Grantham about owning high-quality US Stocks but we all know what will happen to every asset class on the planet when the Super Bubble pops. S&P 500 stocks generally do better than global in pullbacks like we're having now. 

Subscribe to Make Your Money Count Today we're officially launching our online course: Make Your Money Count. The course is sponsored by BayRock and its free for clients of BayRock, family members, and faculty at the Bauer College of Business at University of Houston. 

 

Listen to Missional Money PodcastIn each episode moving forward, I'll use the Missional Money podcast to teach you everything I know about financial planning and investment management. Here are just a few...