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Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Saturday, October 19, 2024

The ride up, until its down


The market is at all time highs, and its anyone's guess if this continues into next year.  With the world printing cash, the cash must flow to assets.  And right now, USA is the best place for assets in a world having challenges.

This does not mean average Americans are being prosperous.  It means loose cash finds whatever the world thinks is a safe investment.   When the loose cash ends or people panic, no one can predict exact timing.  But it will end in 2025 (if not sooner).

When it does, fear will take over hard core, and US bond rates should plummet.  When this happens it will be the LAST time you see rates this low easily for a decade.  Ideally move out of bonds into energy, commodities, gold, bitcoin, even oil.   Can also invest in technology such as AI or biotech.

What could change my outlook? Average Americans having lower costs, gainfully employed, paying down debts, and growth in consumerism.  Without this mix, we will all struggle to keep things afloat.

I do think after this crash we may see inflation in the decade ahead balloon as the world prints its way out of debt, and its obligations to baby boomers. 

Buckle up!  Enjoy this stock market, for it won't be the same ever again.  Easy money days are almost over.




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