It was the best of times, it was the worst of times…

Thanks to Charles Dickens for the headline!

For our retired members, living on 4% of their portfolios, it is the best of times.

For our working members, living on their earnings, it is the worst of times.

First, the best of times!

The markets are hitting all-time highs. Why is that so? Several reasons have been advanced.

The easy-money policies of the Fed have resulted in an increased money supply, some of which has gone into the market. With the lowest interest rates in living memory, the stock market is attractive. Increased demand for securities drives markets up.

Investors living on money from their portfolios find their incomes to be increasingly larger.

How long will the best of times last?

In the short run, no one knows. In the long run, the markets will continue to rise as they have always done.

Next, the worst of times!

The Manchester Guardian has written about the biggest economic slump in 300 years. On May 28 of this year, Harvard Business School published a paper titled Coronavirus Could Create a ‘Bankruptcy Pandemic’.

With the worst economic conditions in living memory, many people are under-employed or unemployed. Consumer spending is way down. Most of our working members are self-employed. They are feeling the reduced consumer spending.

How long will the worst of times last?

In the short-run, they are here to stay.

And in the long run? Respected economists feel that in the long run, say two years or more, they will likely continue.

What can ease the pain?

Because of COVID-19, we have reduced or eliminated traveling, restaurant dining, going to games, theater, concerts and other costly activities. This type of reduced consumer spending will delay long run recovery but it eases the pain of the short run.

Whether they are living during the best of times or the worst of times, members should continue to practice the habits of Monday Morning Millionaires on a background of their personal asset allocation be it permanent or variable.


The Monday Morning Millionaire Program was designed to offer compressed investment convictions. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.

The program does not provide any investment advice or endorsements.

With fewer than 400 words, members can read this post in less than five minutes. Following and studying the links imbedded in these posts would take longer. How members manage a post depends on their level of interest and investing knowledge.

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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