Is A Disaster About to Happen?

With the recent stock rally, I was just getting comfortable again. Almost all my holdings are up from their purchase price.

And here we go again.

There are some rumblings about the next economic disaster on the horizon.

• Famous investor Michael J Burry (featured in the book and movie, The Big Short) filed a form with the SEC showing that he sold all his stocks, except for one private prison company. What a bleak statement!
• The Producer Price Index (or PPI) measures “the average change over time in selling prices received by domestic producers of goods and services.” Germany’s PPI hit 37.20% in July.
• It appears likely that there will be a cut in gas flows between Russia and Germany this winter. That seems unavoidable. Factories will be shut down? Earnings will be lower? And the government of Germany doesn’t seem to be doing anything to prevent it.
• Central Banks will likely continue to raise rates into the winter, which is not what the current stock market expects.
• The Fed hasn’t even reduced its balance sheet by $1.

So I return to this thought that has been with me for a while – have I gone too far investing in the market? Perhaps I should sell some stuff off and wait for a couple of years for the world to figure this stuff out?

Or should I add some type of hedge to my portfolio?

How can I be long S&P 500 and short the German DAX? I need to figure out a way to get into that trade.