Are you Prepared?
it seems to be a regular cycle for many of us to see a market crash every 5-6 years with some Federal Reserve induced stock rallies in between. We had a run up in the 90s with cheap margin debt (the Fed’s purview) and bailouts of people that should’ve been financially punished (LTCM), helped by a hot ‘n bothered investor class going ga ga over tech stocks.
Then we had a huge crash. Then the Fed inflated a housing bubble with 1% interest rates and no regulation of the mortgage industry, to pump up the economy and people went ga ga over flipping houses then that crashed.
Today, It’s More of the Same – Recipe for a Crash
Now we have had the Fed keeping interest rates at 0% for 6 years, and printing 3.6 trillion dollars to keep mortgage rates low and companies and governments issuings gobs of cheap debt to spend more money indiscriminately or to buy back inflated company stock. The debt bubble may be a big part of the next market crash as Puerto Rico and Greece teach the world that “NO you don’t have to pay back that debt,” which sends shudders to G7 central bankers and governments. How will this end? Who knows, but don’t you want to be prepared?
How can you prepare for the next big boom? Check out my article “4 Ways to Prepare for Next Market Crash” from my LinkedIn blogroll: