Biggest Economic Concerns to Think About: Living in these turbulent times requires us to work a little harder to figure out where or how to invest our hard earned capital. The biggest economic concerns I have today are the following: 1) The inevitable decay of the US dollar. The US will be printing money to pay its interest and expenses. The country has little or no chance to turn around deficit spending regardless of who wins the election. Our Dollars will be worth significantly less 10 years from now especially if we are letting our money sit in a bank account earning less than 2%. 2) I have little or no confidence in investing in the US stock market. The only people that have been making money over the last 12 years are the Wall Street promoters. This includes stockbrokers, investment banks and money managers. The cards are stacked against us. Most of the volume on the exchanges today comes from short-term traders. There is diminishing number of fundamental investors like Warren Buffet. 3) Interest rates are low and probably have to stay low. If the US borrowing rate were to go up, it would accelerate the need for the government to print more money to pay higher interest cost with the multi trillion-dollar deficit. Look at Japan. They have a giant deficit for years and have been printing money for decades. Their stock market is substantially lower today than 30 years ago. 4) Decay in our personal real estate (our homes) in the US and more acutely in Illinois. I question the ability for housing to reverse its downward trend. We are experiencing a one/two punch causing depreciation in our housing here in lake county primarily because of poor employment opportunities in Illinois and the high relative real estate taxes we are burden with in this area.
Posted on: Mon, 22 Jul 2013 17:27:09 +0000
Trending Topics
Recently Viewed Topics
© 2015