Have you ever stepped into a mud-filled lake or murky body of water never knowing just what your feet might encounter? That’s what you’re doing to each dollar you’re placing in U.S. financial markets these days, your personal savings. A good rule of thumb is when you can’t see the bottom, you won’t know how deep it is, therefore, you don’t step into it. In other words, always understand the downside risk as well as the upside potential of anything you may find yourself investing in. Yes, even today the probability of a successful outcome [however minute that is] is still out there. However, it’s been my experience that nothing much good can be found these days in the very uncertain waters known as this [particular] U.S. economy, orchestrated by nothing but Washington Democrats. Your eyes are not deceiving you especially for those who are already in, or nearing retirement. So maybe wait and see, even if it means placing personal plans on hold it might be for the best because I truly think the deck is stacked against us for now.
I’ve actually never seen anything quite this bad out of Washington, but let me explain. It’s not the American worker; in many cases they have made the logical decision in the face of diversity. Those who received stimulus checks in the mail from their wacked out leaders in Washington, and those that made a personal decision not to work but to stay at home on the couch and vegetate while playing “Call of Duty” it all makes sense now. After all these were never your cream-of-la-cream and now their bills were being met without even occupying an hour on their old employer’s clock? Yet how sad for their futures and the future of the country, after all it takes only one Democrat to ruin every single thing… Democrats are talented that way. A healthy supply chain is not to be found in just about anything you were used to purchasing before 2020.
And a $20,000 bill still just to own one Bitcoin? I find this surprising as not one single Crypto-currency coin has ever been minted [yet], not a single one. So let me get this straight, there’s fools out there that will pay upwards of $20,000 for something they can never touch and then they think they own something known as a virtual coin? LMAO!… but then I find myself doing that often these days, laughing at stuff that makes zero sense. All one has to do to determine how much froth needs to be worked out, worked out of our financial markets is to look at these ridiculous Crypto-currency offerings. If any of them, [any one of them] has a bid above one dollar then too much speculation still exists across financial markets and needs to be worked off the system. That’s just the bottom line. Market downturns are never pretty, but they are required to work out all the froth so we can start anew. Many individuals will be brought to their knees during that “Come to Jesus” process. It’s rather ugly, but necessary. Those that exhibit the ever-optimist viewpoint will get hurt the worst. Some companies and organizations will go under, never to be heard from again, as well as some politicians and leaders who became victims of the financial massacre resulting from what they built. It’s okay as lessons have to be learned. Those that survive all this are stronger, smarter and more equipped to wade through the nuclear aftermath of a future financial implosion. Stuff happens in financial tsunamis which make all participants a bit stronger than they ever would have been before…. it’s order out of chaos right?
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Well said, and all correct. You brought up an important point – what’s attractive in a zero-rate environment does not necessarily make sense when rates have a stronger bid. This was my first argument back when I began talking about Crypto “anything”. Had we not had Fed-induced zero interest rates for over a decade no one would have ever heard of Crypto currency, there wouldn’t be a need for it to exist or even catch a bid. This whole recipe of raising corporate taxes by Washington lawmaking-losers created the offshoring of American plant and equipment to places we still can’t pronounce, couple that with stimulus after stimulus program from the Federal Reserve to drive down interest rates and prop up equity markets just to print sub-2% U.S. GDP growth so everyone would feel better? These events basically destroyed American economic prowess. Now that we were finally bringing that back under Trump and righting the ship the Biden Crime Family moves into the White House. And look where we are now, nothing but smoke and mirrors and constant lies when this economy is doing nothing but under-performing… what’s funny is how the U.S. financial market indexes still have yet to catch up to the reality of this Biden Crime Family train-wreck.
Well, you can’t say we didn’t see it coming. The blind have followed the blind walking the edge of a cliff. Fall they must.
Can it get worse? Can you say tip of the iceberg? Let’s take a look overseas; Europe needs dollars and Asian exports are falling. I wonder if the European Socialists, the export driven Asians and the liberal left understand the Global economy? They don’t!
Q3/Q4 will be what we used to refer to as “Trash Quarters” where companies start to reprice assets carried, making it more difficult to “borrow to stay in business”! A model that can only be brought about in a zero rate environment. The snowball is just beginning to roll downhill. I’d offer more but, this man made economy can’t be written in bullet points. This will have books written about it, books no one will ever read.