**FAQ**

**1. What should investors do in uncertain times?**
It is advisable for investors to focus on building a portfolio that they can live with in the long run. It is important to be flexible and favor investments that can perform well in various scenarios, rather than being heavily reliant on a specific outcome.

**2. How long can markets stay irrational?**
Markets have the potential to remain irrational for an extended period of time, as evidenced by the phenomenon of asset bubbles persisting at high levels for longer than anticipated. While markets eventually normalize and revert to the mean, the timing of this normalization can vary significantly.

**3. Should investors make adjustments based on market irrationality?**
If investors are genuinely concerned about market irrationality and the formation of asset bubbles, it may be prudent to make adjustments to their portfolios. However, they should also consider the opportunity cost associated with taking risk off the table prematurely if the bubble does not burst in the short to medium term.

**Conclusion**

Navigating uncertain economic and market conditions can be challenging for investors. It is essential to focus on building a diversified portfolio that can withstand various scenarios, rather than trying to predict market movements based on day-to-day news. While markets may exhibit irrational behavior for extended periods, eventually they tend to normalize. Investors should carefully evaluate their risk tolerance and make adjustments to their portfolios as needed.

By Julie Cazzin with John De Goey