Is a Stock Crash Imminent? For more than a couple of years, I have been of the opinion that stocks have been overvalued. Over that time frame, except for early 2020, stocks have continued to rise.
Many of the world’s central banks are beginning to raise interest rates in response to higher levels of inflation.
An important anniversary is approaching this week. Although it won’t be widely observed or likely even mentioned, it’s the anniversary of the event that led to current economic and investing conditions.
The basic laws of economics and finance have not changed. At some future point, this will become evident with economic conditions emerging that are unpleasant at best. We are already beginning to see evidence of changing economic conditions.
Globally, both in the public sector and the private sector debt levels are literally at nosebleed levels.
Fed leadership and some politicians have insisted that inflation is transitory or temporary and that once the economy fully reopens, things will return to a more ‘normal’ state as far as inflation is concerned.
While doing my research this past week, I found an article published on “Bloomberg” that offered some great perspective on the amount of currency that has been created literally out of thin air since early in calendar year 2020.
The base cause of artificially inflated markets is the devaluation of the US Dollar. Dollar devaluation, stated another equally accurate way, is price and asset inflation.
As I have suggested previously, the economic climate and the policy response to COVID (massive money creation) will change the perspective that many Americans have about retirement.