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Kerry Lutz's--Financial Survival Network

Nov 19, 2021

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.

-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

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