You’re probably pretty happy that your stocks went up over the last 2 months. However, looking at the following chart:
Should make you realize that you really haven’t made ANYTHING over the past 8 months due to Uncle Ben Bernanke. You see, with his proposal for “quantitative easing” (or “money printing” –see awesome cartoon explanation of QE here), Ben has basically smacked down the value of the US dollar and therefore, any gains you’ve made have been offset by the drop in purchasing power of the dollar.
What is Dailywealth saying here?
Right now, you’re breaking even. If the market drops and we still have price increases, you will get poorer. What’s your plan to preserve your purchasing power and quality of life? You better have a plan.
Hope this gives you something to think about and thanks for stopping by.
If you’re looking for a plan to protect yourself from a drop in the value of the dollar, consider a conversation with me. Learn more about me including links to my professional sites here: About Chris Grande