Wolfstreet Report – uw spaargeld in een bodemloze put?

Wolfstreet report,Het Wolfstreet report van deze week behandelt het effect van de Everything Bubble. EenWolfstreet report Beurs & economie, Carmage, Carmageddonddon, Housing Bust, Wolf Richter. Amerikaanse automarkt

Dit Wolfstreet report richt zich op de verleiding om met uw spaargeld of oudedagsvoorziening te gaan speculeren op de beurs.

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Duur: 11:35 min.

Publicatie 13 september


We are in the miraculous process of borrowing and printing ourselves to prosperity or whatever. Short-term interest rates on essentially risk-free money, such as US Treasury bills or insured bank deposits, are near zero. For folks in many countries in Europe, they’re below zero. Long term risk-free interest rates are below 1% in the US and below zero in some other countries.

With the Federal Reserve leading the charge, central banks have jumped with both feet into the “let-inflation-run-hot” dogma. Inflation means the destruction of purchasing power of the currency, and thereby the destruction of purchasing power of labor paid in that currency.

This is no biggie at the top, where folks get raises to the tunes of millions of dollars. But it’s a biggie for the lower 50% on the income scale. For them, the dogma of letting inflation run hot is going to be very tough. And as inflation saps the purchasing power of their incomes, they’ll cut back.

And for investors, the thin income streams from low-risk investments are not nearly enough to compensate for the loss of purchasing power of that investment due to inflation.

So, to dodge these issues, let’s put or keep our hard-earned nest egg in the stock market?

The US stock market is ridiculously overvalued, though it has recently been through a little bit of a selloff, particularly among the biggest names in tech, or so-called tech, that are down between 8% and 13%, and in Tesla’s case by about 25%, from their peaks just a few days ago. They’re very fragile – after the enormous run-up they’ve had. Many of those stocks, if they dropped 50%, would still be enormously overvalued. If Tesla dropped 90% from its all-time peak, it would still be overvalued.

The idea that stocks can only go up is nonsense.

Verder lezen? Dat kan hier.

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