Is the stock market prize falling? Don’t worry, government intervention is on the way! This means that investors are going to make a killing in the next few years. You just have to be long during a historic bull market and you’ll look like a genius. But it also means while the rich are getting richer, the poor are getting poorer. This is how the system is designed to work. It’s not a mistake.
So if you’re an investor, you’re going to be in good shape in the short and medium term though. President Biden and his new administration are going to come in with their guns blazing. They’re going to drop monetary and fiscal bombs all over the financial market battlefield.
We all know of someone who is always arguing mainstream talking points, believes in way to much fake news and watches too much CNBC. They are pouring their entire life savings into a single ticking time bomb 401K too. And they are also applauding the Fed for all the great work they do.
This Our Friend will ultimately end up broke and if you follow his plan, then you too can become poor, and overly-dependent on a crooked government with broken social policies, when your time comes.
In the face of excessive credit expansion, consumers' inflation expectations accelerate to the point that currency becomes worthless and the economic system crashes. The Venezuelan stock market is a good example of what a crack-up boom might look like. A crack-up boom can give a false sense of wealth and prosperity to the uninformed. After all, the stock market is going up, so we must all be getting rich, right? Not exactly.
Lets say the value of the stock you are about to buy is at $2 and the price of candy (consumer goods) at the grocery store is $2, that is same price. if the price of stock value went up to $3 you will be happy you are getting rich, but what if at the same time frame the price of candy went up to $4. That means the stock market maybe going up and you are still loosing your purchasing power.
So would you rather have your money in the stock market or bought some consumer goods(candy)?
Which brings me to the scary ending to the story, No Bubble Lasts Forever. They can last for years. They can last for decades. But at some point they pop. Maybe the central bank infused debt bubble can last another decade. I don’t know. Nobody knows. But I do know that it can’t last forever. Regards, Johnvic Anagboso This is not a legal/financial advice and that is why I urge you to invest first in your FINANCIAL EDUCATION.