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Thursday, May 21, 2020

Sell Stocks Now


I own and track the Vanguard Total Stock ETF, VTI.  It invests in all the stocks in the US markets: small, medium, large cap.  It is a great way to invest in all US economic activity.

Right now, the price of VTI is approximately the same as it was in May 2019.  
  • In May 2019, unemployment was about 3.5%.  In 2019, GDP grew 3%.  There were no major global crises and all major industries worldwide were operating successfully.
  • In May 2020, unemployment is over 15%.  A global pandemic is happening and over 60,000 people have died in the US.  Oil prices went negative a few weeks ago and the world is overstocked with oil.  The global travel industry (hotels, airlines, cruises, rental cars..) is not operating.  JC Penney, J Crew, and Neiman Marcus just went bankrupt.  The FED is printing money, buying securities and the US government is blowing money on people, corporations, and healthcare.  You cannot eat in a restaurant in over half of North America.
Why is the price of VTI the same as it was in May 2019?  I don't know.

Maybe Aliens are controlling our minds, Bigfoot has taken over the Fed, Elvis has left the building, and everyone is drinking Lysol and will be fine, but I don't like this situation.

Disclaimer: this is not professional investment or retirement advice and should be used at your own risk. The author is not a licensed financial advisor. You should not believe everything on the Internet including this blog and should check multiple sources possibly including a professional financial advisor before making decisions.

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