Attack on three fronts
Recession, hyperinflation, and the mounting national debt
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What’s up Graham, it’s guys here.
Here’s your weekly update from the guy sitting in a half-converted garage making YouTube videos about incoming catastrophes. But in all seriousness, the US economy is a complex machine, and every cog and level that’s being pulled by the policymakers, and the weight of the decisions taken years in the past are now weighing down and affecting the course it will take. We’re surrounded on all sides.
You can only handle what you understand - so join me this week as I break down the three critical problems that are waiting in store for the US, and how you can prepare for it, because forewarned is forearmed, right?
The Biggest Market Crash of our generation
Recently, I came across a video from Patrick Bet David where he observed how the market went through a boom and bust cycle like clockwork, every 10 years, and how we are on the verge of what could be one of the greatest opportunities for investing. So let’s look at how these cycles have occurred in the past, why the most powerful people in the world think that the market is headed for a downturn, and the eight ways that you can prepare yourself so that when the opportunity presents itself, you can take advantage of it and make money!
The warning of hyperinflation
Well, I wish I could say something different, but things just got a lot worse. Inflation came in at 9.1%, significantly exceeding the expectations of every analyst. At the same time, home deals are being canceled at an alarming rate and a recession is all but confirmed… So with inflation increasing 1.3% month over month, here’s what you need to know about why inflation keeps getting worse, the impact that it’s going to have on the market, and how to protect your investments!
The Fed exceeds expectations
We are going to be facing the worst US debt prices in history, and surprisingly, no one’s even talking about this ticking time bomb! As personal savings are crashing to an all-time low, and both household and Federal debt have risen to staggering levels, it’s only a matter of time before the music stops. If the Federal government has operated on a deficit for the last 20 years, why is it such a big deal now? Because we are now reversing course, and the effects will trickle down to impact every person in the economy. Here’s what you need to know about the Fed’s recent move and how to handle your investments to make the most money.
So that’s it for my Sunday round-up. For the new folks here, in this newsletter, I give a quick recap of whatever you may have missed over the week on Sunday, and on Wednesday, I will be doing my deep-dive article on one of these topics.
See you next week with another bunch of exciting videos!
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Let's keep kalm..... there is no gain on stressing. Thanks Graham!
Look, inflation is high for certain but for those who lived through the 70s and 80s, that’s what hyperinflation was, not 9%. The Fed definitely needs to continue normalizing rates. But, for more than a decade, rates have been close to zero. So, going from near zero to 9% is a shock but it’s not armageddon like some in fintwitland and elsewhere are claiming. For perspective, in the 1970s, inflation peaked at 15% or greater and that didn’t come with a once in 100 year global pandemic plus crazy global supply chain breakdowns. I think folks need to take a deep breath and wait for the rate hikes to take effect. I’m not saying it’s unicorns and rainbows but the sky isn’t falling either.