Retirement Lifestyle Advocates
Last week stocks fell hard, US Treasuries declined as did gold and silver.
Private sector debt levels are about the same as when the Great Depression began but US Government debt is about 8 times greater when measured as a percentage of GDP.
Due to the monetary policies of the Federal Reserve, we are now experiencing inflation but we will not avoid a painful deflationary environment.
This week’s holiday issue of “Portfolio Watch” is a preview of that Special Report.
It’s the Fed’s “hold my beer” moment. After more than a year in which Federal Reserve leadership appeared clueless, pollyannish, and indecisive, the Fed is conducting a full-throated messaging campaign to show that it is as serious as cancer about the inflation surge that is scaring the bejesus out of consumers, investors, and economists.
Stocks will fall, real estate prices will collapse, and unemployment will soar.
From where I sit, it seems that stagflation is the most likely economic outcome near term.
The premise of my best-selling book “Revenue Sourcing” is that an aspiring retiree needs to plan for one of two economic outcomes, either inflation followed by deflation or just deflation. As time has evolved, it has become increasingly apparent that we are seeing inflation soon to be followed by deflation.
In this week’s “Portfolio Watch”, I want to give you a preview as I think it’s important to understand how evolving money leads to economic seasons and what I believe are predictable investing conditions.
The reality is that inflation is a result of extremely loose, I would argue reckless, monetary policy.