Your Keyword Here | A Market With Out Bernake? Oh No!!

A Market With Out Bernake? Oh No!!

Is Ben Bernanke responsible for record market levels? Forbes magazine says “YES”! Well, at least yes for all the gains since 2009.

Surprisingly, research says that 100% of the market’s gains since 2009 have come when the Fed has decided to buy bonds (also known as quantitative easing). And it turns out that in the few periods where they were not printing money, the markets went down.

Basically what’s happening is the economy cannot support market prices. The only thing that can is consistently printing money and flooding the economy with cash. As soon as the Government stops doing that, the markets will fall down to a value that is more realistic based on what the economy is doing.

What does this imply for you? This would mean you need to pay very close attention to what the Fed is doing and when they plan on “tapering” off their easing. As soon as the tapering begins, you need to look out for a quick falling market.

Of course, the market may decide that it will not wait for the Fed to taper. It might wish to nose dive anyway.

This brings up the same question I ask you regularly. Are you wishing for the best, but planning for the worst? Or, like most people, are you hoping for the best, and planning for the best?

Now is a great time to review your planning to make sure that you don’t get caught by surprise when the markets take a dive. Why not call our office to get a 2nd opinion? It’s free, and it may end up being really worth your time. 916-509-7227 (Pacific time)

Author is Matt Golab, who is the Chief Advisor of Aaron Matthews Financial Resources.

Matt is an authority on creating innovative tax and investment solutions to help his clients succeed in their retirement years. The strategies Matt Golab has established and passed on through successful financial planning with hundreds of clients over the years. Golab is often asked by national websites that focus on the education of consumers to present his knowledge on the areas of retirement and retirement income plans. Matt Golab continues to expand the geographic reach of his audience and desires to bring his expertise to a nationwide television audience. Matt emphatically states his mission, “I want to change the way Americans view their retirement. They can succeed (stay retired) whatever happens in the market”. If you would like contact information for Matt Golab, please simply click here. Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

Filed Under Investment Help | Leave a Comment

Tagged With , , , ,

Comments

Leave a Reply




*

A Market With Out Bernake? Oh No!!

Is Ben Bernanke responsible for record market levels? Forbes magazine says “YES”! Well, at least yes for all the gains since 2009.

Surprisingly, research says that 100% of the market’s gains since 2009 have come when the Fed has decided to buy bonds (also known as quantitative easing). And it turns out that in the few periods where they were not printing money, the markets went down.

Basically what’s happening is the economy cannot support market prices. The only thing that can is consistently printing money and flooding the economy with cash. As soon as the Government stops doing that, the markets will fall down to a value that is more realistic based on what the economy is doing.

What does this imply for you? This would mean you need to pay very close attention to what the Fed is doing and when they plan on “tapering” off their easing. As soon as the tapering begins, you need to look out for a quick falling market.

Of course, the market may decide that it will not wait for the Fed to taper. It might wish to nose dive anyway.

This brings up the same question I ask you regularly. Are you wishing for the best, but planning for the worst? Or, like most people, are you hoping for the best, and planning for the best?

Now is a great time to review your planning to make sure that you don’t get caught by surprise when the markets take a dive. Why not call our office to get a 2nd opinion? It’s free, and it may end up being really worth your time. 916-509-7227 (Pacific time)

Author is Matt Golab, who is the Chief Advisor of Aaron Matthews Financial Resources.

Matt is an authority on creating innovative tax and investment solutions to help his clients succeed in their retirement years. The strategies Matt Golab has established and passed on through successful financial planning with hundreds of clients over the years. Golab is often asked by national websites that focus on the education of consumers to present his knowledge on the areas of retirement and retirement income plans. Matt Golab continues to expand the geographic reach of his audience and desires to bring his expertise to a nationwide television audience. Matt emphatically states his mission, “I want to change the way Americans view their retirement. They can succeed (stay retired) whatever happens in the market”. If you would like contact information for Matt Golab, please simply click here. Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

Filed Under Investment Help | Leave a Comment

Tagged With , , , ,

Comments

Leave a Reply




*