- Risk: We keep talking about the many risks we still see around us, and why we don't believe this is the right time to increase allocation to risk assets.
- Reward: We believe that there's a limited upside potential until Midterms, and we're unlikely to miss out on too much, even if stocks have already bottomed.
- A significant upside (potential) can overshadow (even) a (significant) downside (risk), as long as the reward outweighs the risk.
- Under the current circumstances, not only this isn't the case, but it's the clear/high risk that still overweighs the vague/limited reward.
For further details see:
Yes To Value, No To Growth - It's Unlikely Stocks Have Hit A Bottom Already