The Greatest Economy Ever is Not Happening Now

by Aug 14, 2019Article0 comments

Whether or not you thought a Fed move on interest rates would greenlight a brilliant move or cause for some improvement on the economic dial, this graph tells the whole story:

What you see is an entrenched, self-interested, and Acela Corridor-dominated global elite that has turned the entire apparatus for its own devices. The Great Disruptor could well become the destroyer of this postwar world.

David Stockman, former OMB Director under President Ronald Reagan makes these astute observations. Is the survival of American-style free-market capitalism in question? Of course, folks on the Left are screaming – literally – about “Inequality!” and the “inherent evils of capitalism.”

Well, there are folks on the Right concerned about multiple destructive tendencies first fiscal and, now, perhaps catastrophically, monetary authorities have let fester.

It’s more than a crony here, a crony there. There’s a crony everywhere. It’s systemic, it’s established, it’s bipartisan. And this duopoly just might kill us all.

No matter which way interest rates go a new survey shows why millions of Baby Boomers are unprepared to maintain their lifestyle after their last paycheck. “Boomer Expectations for Retirement,” a new annual study from the Insured Retirement Institute — a trade body for the annuity industry — makes shocking reading. Most boomers are unprepared for retirement, even as they approach it or enter it. 

Amazingly, barely one in 10 Baby Boomer has enough saved up.

This is hardly the first study to report on Americans’ poor retirement savings. But the IRI survey stands out because it focuses specifically on boomers. They interviewed 804 people aged 56 to 72.

In a nutshell, based on their numbers, about 11% have at least $500,000 saved for their retirement. That’s hardly a king’s ransom, but it may have to do.

The remainder don’t even have that. Nearly half don’t have any retirement savings at all. None. All rising tide lifts all boats. The current economy reveals while some are doing better than ever, some are swimming naked as other ships are sinking.

Complacency can be costly.

When the architect of one of the biggest tax cuts in U.S. history looks across the pond, David Stockman sees menacing clouds on the horizon. As Russia and China “seek to rebalance military might in Asia-Pacific” as they conduct joint air patrol tests around neighboring Japan and South Korea, these “Great Powers” known as Russia and China are motivated to end this era of the single “Super Power.” Stockman asserts, “Sometimes it seems they’d like nothing more than to bury the whole idea of the ‘American Century,’ in his message to subscribers July 29, 2019.

Stockman went on to say, “We will certainly lose our status, all by ourselves, with no malign exertions from overseas, if we maintain our present heading.”

Despite the Dow’s 27,000 and the S&P 500’s 3,000, neither the equity high watermarks nor the ballyhooed U-3 unemployment rate at 3.7% measure sustainable success, opines Stockman.

When it comes to the core fundamentals, in fact, we’ve never before seen end-of-cycle conditions this bad. Global debt markets are busted; asset allocators are mired in a mindless-desperate-and-growth-retarding search for yield.

Equities are egregiously overvalued; they hang from a fragile skyhook, as Corporate America’s profits are flatlining, not soaring as claimed. And Main Street – the good, old, borrowed-up American Consumer – will run out of gas.

Pay no attention to the calendar or the outside temperature. Winter is coming. And investors don’t need to predict the future to be prepared for the good, the bad, and the unforeseen starting 2019.

The opinions and forecasts expressed are those of the author, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or investment plan. Past performance does not guarantee future results.

More Investor’s Intelligence

Defense, Defense

Defense, Defense

Many people are lulled into complacency when the markets turn green. Of course, the latest optimistic story is that the U.S. and China are “moving closer to a deal.” David Stockman, Former OMB Director under Ronald Reagan painted this picture on December 4, 2019, “No...

read more
The Fate of Real Estate; A Silver Tsunami

The Fate of Real Estate; A Silver Tsunami

No one can see the future.  But when it comes to residential real estate we can put floodlights on the road ahead by studying the buying AND selling behavior of American consumers based on age. It is important to look at both sides of the equation. Buyers have been...

read more

200 N. Westlake Blvd., Suite 109

Westlake Village, California 91362-3783

805.495.2077   800.266.2077   888.WHY.BEPOOR

Fax: 805.497.8342

wordpress-173703-781067.cloudwaysapps.com


Securities offered through Securities America, Inc. (SAI), Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Investors Advantage and SAI are separate entities.

Important Information from FINRA to consider before transferring your account. Trading instructions sent via email may not be honored. Please contact my office at (805) 495-2077 or Securities America, Inc. at 800‐747‐6111 for all buy/sell orders. Please be advised that communications regarding trades in your account are for informational purposes only. You should continue to rely on confirmations and statements received from the custodian(s) of your assets. The text of this communication is confidential and use by any person who is not the intended recipient is prohibited. Any person who receives this communication in error is requested to immediately destroy the text of this communication without copying or further dissemination. Your cooperation is appreciated.

An informed investor is a smart investor.

Limit your exposure by pinpointing your Risk Number, and craft a portfolio that aligns with your financial priorities.

Get Your Risk Number
Share This

Share This

Share this post with your friends!