Nov 19, 2021
Summary:
Will the Fed kill the market or the currency? It seems that it
could come down to having to choose between the two, and I talk
with Anthony Saccaro to unpack this tricky situation. With low
unemployment and high inflation, the Fed is forced to raise
interest rates. No matter what they do, it’s going to be bad on the
market. To find out what’s happening with this situation and how to
prepare, listen in because you won’t want to miss it.
Highlights:
-Will the Fed kill the market or the currency? It could come down
to a choice between the two
-The Fed is in a precarious position
-The unemployment rate was doing well for a number of years
pre-covid, and they hadn’t raised interest rates in a long time
-Now, unemployment is low and there is high inflation—and they are
forced to raise interest rates
-They’re in a position where no matter what they do, it’s going to
be bad on the market
-The worse of the evils at this point is letting inflation continue
to run
-The question is whether inflation is temporary or transitory—or if
it’s going to be long term
-There aren’t enough workers to unload ships, which is causing
issues on the supply side
-Any inflation we have is going to be permanent, but going forward
it will hopefully settle off at a lower level
-With the stimulus, people had more money, but less goods and
services available
-People begin to expect prices to go higher
-The government is building an economy based on printing money
-If you’re still in the accumulation phase of life, continue with
your stocks
-Focus on dividend paying stocks
-If you’re in the older phase of life, you need to be more
cautious
-Focus on investments that are going to protect your principles
-Dividend paying stocks fluctuate a lot less than non-dividend
paying stocks
Useful Links:
Financial Survival Network
Providence Financial Inc.