Are you aware as to what's happening with your 401k?

Two things just occurred.

1) There is an immense amount of tension in regard to international trade tariffs that just recently sparked up.

2) Congress hasn't been able to settle on the stimulus deal, and what results is the incline of the US Dollar value while blue-chip companies try to stay afloat. The S&P and Dow Jones are artificially propped up right now and extremely vulnerable to violent swings of volatility.

Our economy is highly inflated, and we can only sustain this growth if the fed continues to print more money. This will result in the decline of the US dollar index, but result in higher returns with your equities portfolio. All of your assets will be worth more in the short-term. Your portfolios might say 20%-40% growth since march, but inflation is eroding the value of it in the long term. Over the next coming months would be a great time to take profits or buy into precious metals such as gold.

___

Overall- the stimulus is a temporary band-aid, and if we continue to print at this rate... it will result in a collapse. If the fed just stopped printing all together, the economy will collapse.

From a stand-point of longevity, gradually lowering stimulus measures while simultaneously raising interest rates as we start to see job growth would be ideal. It would raise the value of the US dollar and create strong levels of support, thus creating a much more stable economic climate. This would be an extremely optimistic opinion, and I'm more inclined to propose a bearish scenario.

This is just my opinion as someone who spends a good portion of their life studying this. If I informed you on what's going on from a macro-level perspective, I'm glad. If you wanted to add anything, I'd be open to hearing it.
Are you aware as to what's happening with your 401k?
0
3
Add Opinion