Based on current assessment, the fact is that certain assets are under valued; but that does not mean it is trading at fair value. A lot ride off public confidence. That is tough to gauge. If the economy weakens, either it goes into an inflation or recession state, the longs will suffer. Portfolio diversification translate to going long across the board. The article clears states that when inflation kicks in the economy goes into a tail spin due to changes in Monetary (Fed) policies.

Prudence should be in monitoring your investment. The shot gun approach only soften the hit. In this state, best to mark only one or two liquid targets like a hawk and be agile.

I especially liked the part implying how those too young to remember the 70s and early 80s really don’t understand just how sucky things can be (sucky is a technical economics term).

I like the chart from this this post as well.