WE ARE CURRENTLY at peak overall market valuations, peak debt, peak market cap to GDP ratio, peak corporate debt and peak household debt. 35% of all US dollars were printed in 2020 - a strong indicator of upcoming inflation. Things may seem bleak. But are they? Should we be worried?  It's worrying I won't lie. But at this point a relevant debate is whether or not the economic environment actually justifies higher multiples... Our financial systems are MUCH more robust than in 08 - financial systems are now more regulated. And, unlike in 02, fundamentals are strong and can arguably back up higher multiples. So it's not an obvious answer, we're not necessarily in a bubble. Markets can stay overvalued for years.   Another thing worth mentioning is that tech and growth's valuations have already decently corrected. The market is overvalued, but not the majority of tech and growth.   Something else worth noting is that inflation makes everything look bigger than it is - hence the definition of inflation. In a low interest rate / inflationary environment, companies can borrow greater amounts because interest payments are so low. Debt then can be used to fuel expansion, which then ripples throughout the economy.  I'm staying 90% invested. 10% of my wealth is held in cash and cash equivalents (SPACs) in case opportunities present themselves. If the market rips upwards for the next few years, I want to take part in it. But if we see another crash, I can still rely on my plan. The most important thing is to be cautious with things like speculative investments and margin.

Plan