World markets are so intertwined these days — what happens in one region of the financial markets can affect another halfway around the world.
New markets in the global space are emerging all the time. And the key to growing your wealth is looking outside the box. The world is truly your oyster.
Here’s how the world market is looking at the moment…
Over the last 12 months, the interest on federal debt rose above US$700 billion per year. As the Fed raises interest rates, the number will soon go over the cost of Social Security and Pentagon spending — combined. Meanwhile, inflation reached 40-year highs.
As predicted last week, stocks began trading yesterday with the Dow at less than 30,000. Next target: 20,000.
After a questionable government budget of tax cuts, the pound sterling went into free fall against the US dollar. That, in turn, caused a rout in the bond market that has then delivered even bigger losses in market-to-market derivatives — because the value of the pound relative to the dollar is so low.
Inflation is a policy. It’s a tax. Like all taxes, it lands on some harder than others. And the farther you go down the wealth mountain, the harder it falls.
We are at a moment of extreme fear — sentiment is at lows. Which begs the question: Is this as bad as it gets? At least for now?
The randomly selected 2% is the Holy Grail our (clueless) inflation warriors so covet…and slavishly pursue. Belief in this target is now so absolute, no one in the economics profession or financial industry asks the question ‘why do we have this target?’.
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