“Not too hot, not too cold…. just right.” Goldilocks has somehow become idolized for this one statement and yet I find it amazing that she isn’t held accountable for the rest of her acts. By my accounts she was a disobedient child, trespasser, thief, ingrate, vandal, and coward. Remember all that during the gazillion times you are going to hear the term “Goldilocks Economy” in the coming weeks and try to apply those terms to investors and the economy.

I know it’s easy to dream of the 90’s and especially the late-90’s with its bubblicious market of high stock returns. Ahhh… the good old days. But were they just right?” Seems to me the economy may have been just right but the stock prices were not. I know it’s sacrilegious to be in this business and not romanticize or fantasize about ridiculously high stocks but that is my world. Just because economists, pundits and financial media love to switch from a landing that is “too hard” one day to “too soft” the next day doesn’t mean they are correct when they find one that is “just right” today. Even if it feels comfy for us to hear it. There is a fine line between stagflation and Goldilocks or slow growth and moderate growth so don’t get used to the one you believe in today. It’s likely to change.  With each new economic report investors allow themselves to get pushed from one investing climate to another. I am not expecting or wanting everyone to ignore the economic data or the Fed’s potential reaction to it, but there are so many aspects of investing that need to be given more attention.

One more thing about the Goldilocks parable… there were three bears that everyone seems to forget. You could call them Papa “Inflation” Bear, Mama “Geopolitical” Bear, and Baby “Debt” Bear. If they show up at her house, I have a feeling she will be “not too hot, not too cold… just right” as they eat her for lunch.