Just stick your money into an index fund and you’ll retire comfortably: that’s the cliché we hear from money managers and old-school investing commentators all the time. That might have been true at one time in history, but can we continue to count on the stock market to deliver us a comfortable retirement?
Over the past 115 years, many monetary experiments have been implemented by the FED’s officials, but, to me, one quote says it all: “Permit me to issue and control the money of a nation, and I care not who makes its laws!”
The FED is utterly confused right now. Less than 4 months ago, Chairman Powell told the world that America’s economy could withstand much higher interest rates, but the markets had other ideas.
The stock market does not represent the real economy in a perfect fashion. Rather, it is sentiment, momentum or the lack of alternative opportunities that can cause rising or falling prices.
It looks like 10 years of central banking liquidity infusions that make their portfolios as bloated as they’ve ever been aren’t enough for the greediest of them all, those that made money off of wars, opium and enslavement, among other illegal ventures.