The stock market is so desperate for justification of a continuing bull market, that if the Fed were to fail to drop interest rates today, by the .25% baked into the market since last month, the resulting train wreck could easily be the trigger that the market, economy, and dollar has been fearing, which could initiate a precipitous and all-encompassing collapse. I say that because all of this is occurring against the backdrop of astronomically-high and artificially-induced stock valuations, a deepening manufacturing recession, decelerating job gains and economic growth, and a political climate that could erupt into a civil war or constitutional crisis at a moment’s notice. So, to say that this is a dangerous time for investors is quite an understatement.
For the past year or two the stock market has been running on borrowed time (not to mention borrowed money), buoyed up by paid for hype and excitement, backed up by an equal amount of smoke and mirrors from the government and Fed. Having concern for that scenario, many investors went in search of new and more lucrative opportunities, unfortunately many zeroed in on a different representation of the same smoke and mirrors presentations. Unicorn IPO’s became the rage, as ethereal companies raced to market with their impressive “elevator pitches.” Cloudera, Dropbox, Lyft, Pintrest, Pivotal, Snapchat, Spotify, Survey Monkey, and Uber are just a handful of incredibly hyped companies that are all underwater today from their opening price, some of which never saw a positive moment.
The Fed slashed interest rates to zero in the wake of the last financial crisis, which combined with trillions of newly printed dollars that temporarily satiated Wall Street’s crippling addiction, permitting public companies to fund massive stock buyback programs, thereby boosting stock valuations and executive compensation packages, while giving the illusion of an expanding and thriving stock market. Meanwhile, savings and retirement accounts were diluted with ever more worthless dollars. By continuing to supply Wall Street with phony funds, the Fed has melded the country’s economy with the stock market, such that when the day of reckoning comes and inflation seriously rears its ugly head, the Fed will be utterly powerless to do anything about it.
If any of that’s not enough, it was just reported that our annualized Q3 GDP came in at 1.6%, down from 2.0% last quarter. An even greater concern when you realize we were at 3.5% in December of last year and again just last June. There can be no doubt that a day of reckoning is coming and the fact that the Fed, government, or anybody but (fake) news outlets are even talking about it. Our economy continues to slow, retail sales continue to slow (not a good sign going into what should be our biggest retail season), and industrial/manufacturing production also continues to slow. The writing is on the wall. Don’t become a casualty of the coming economic calamity because “you didn’t know.” But no matter what, don’t get caught without a chair when the music stops. Get the time-tested asset protection of physical precious metals. Call the experts at American Bullion now, at (800) 653-GOLD (4653).