By no means do I take a "stick your head in the sand" mentality. Absolutely proceed with caution. A crash triggered by global economic strife could very well be imminent. If you've lived long enough, you realize that some level of carnage always lurks around the corner.
What irks me about Roubini is that he serves nobody but himself with his predictions. There will be a crash, just as there will be large earthquakes in California at some point. Who really cares if his version of events leading up it, whenever it goes down, plays out or if it's somebody else's brainstorm?
I proceed with two plans, Plan A and Plan B. Plan A means I consistently purchase the equities I like no matter what's going on the world. Plan B means I increase that buying as much as I possibly can when corrections and crashes play themselves out. If you implemented Plan B throughout the end of 2008 and beginning of 2009, you've done well.
Not only is SPY up since 2009, so is the
PowerShares NASDAQ 100 Index ETF
by a whopping 106%.
If you picked the right stocks, as usual, you've done well.
is up about 576% since 2009. Even less-publicized names such as
have performed remarkably well, up 72% over the same period.
Of course, if you picked the wrong stocks on the 2008 collapse, you barely broke even or you got hurt.
is down about 2% since 2008.
shed about 47% of its value.
That's the sort of thing investors should concern themselves with: stock- and sector-specific vision and analysis, not macroeconomic prognostications.
Simply stated, macro-economists are useless to investors. As such, I really wish outlets that help inform investors would focus less on them.
Give me something I can use. Consider history. Think about all of the crises you, your parents and your grandparents lived through.
Have a Plan A. Have a Plan B. Stick to them. If Roubini is right, 2013 might end up worse than 2008, which could make the recovery that much sweeter.
At the time of publication, the author was long INTC
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.