All we need now is Motown legendary act the Commodores singing “Good Times Never Felt So Good” to a packed house on Wall Street. The “Roaring Twenties” are back again and this time it’s even better. If we wish hard enough we may envision a Lexus or two in every driveway.
Despite the fact every indicator shows the markets are being set up, the pandemonium only increases. Remember the saying, “If it’s too good to be true, it probably is”. If Wall Street numbers were to stand on truth, a more appropriate song may be “Running on Empty”.
What happens if the Federal Reserve keeps printing money like there’s no tomorrow? Wall Street continues partying and inflation destroys the dollar. If they restrain QE, Wall Street will be called on the floor and inflation marches on.
In advising clients on protecting their wealth, we believe tangible assets are much safer than paper IOU’s. We are not Anti-Wall Street but placing 100 percent of our wealth in paper assets is dangerous. When we do see a market correction, how much can you afford to lose?
We prescribe diversification in various areas. Using this method guarantees a percentage of our wealth is insured. We have grown so accustomed to blindly following financial advisors that we forfeit our diligence. Truthfully, we rarely question their decisions for fear of looking ignorant.
We are sounding an alarm that is historically accurate. America will not see a healthy economy as long as we follow the same reckless monetary course. Will Wall Street continue to post gains? What is the dollar going to be worth in another 10 years? The charade that “all is well” will eventually tell on itself.