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I was having a discussion with some business friends about where they get their news from this week. Aside from the U.S. Presidential race and the Rio Olympics that is. The news sources that I read/listen to regularly are more of the alternative style. Being an engineer, I read lots about the trends in various engineering and science fields. Being a business owner, investor and financier, I also keep an eye/ear open to things happening in the banking and financial sectors. And being a parent of toddlers, I try and read about parenting and meditation.
I had come across a post from Mike Maloney at GoldSilver.com about how we are overdue for our next recession. There are a number of articles from different sources that he shows as well as the graphs that he regularly uses from the Federal Reserve data. Generally, all the major markets are at or past their 2008 levels after a steep decline. This is everyone thinking that things are great! But you look at billionaires not buying multimillion dollar apartments in New York City and the correlation of the amount of base currency to the stock market and you start to wonder what is going on? Perhaps the Fed will continue to hold interest rates at the current levels for a while longer.
Or maybe they will start to follow the European Union with the move to negative interest rates on deposits. This means that people like you and me will be CHARGED money to keep our money in the bank, rather than RECEIVING interest. My friend sent me a video about the plan in place in the EU, New Zealand and Canada that states that these entities can essentially “bail-in” their depositor’s money to stave off the next downturn. And in there it also states that the FDIC and the EU have a plan that will do just this. Well, the FDIC is based in the US and it turns out that this plan is also in place right here at home.
Many of you may be thinking “This is just the alternative news and conspiracy theorists getting everyone riled up. The market is doing great!” And that is the message that the main stream media is pushing. But what would you say if Warren Buffet would consider putting his billions in a mattress or somewhere where his wife wouldn’t find it? These are mainstream media sources with the best investor of all time saying things are looking to take a negative turn.
Now, my intention with this information isn’t to alarm and freak you out. OK, well maybe a little. It freaked me out. But it is primarily to start thinking about where your news is coming from and understanding that there are things way outside of your control that can affect you directly and dramatically. There is nothing that anyone can do if the Fed moves to negative interest rates, but what can you do to prepare? So I ask, where do you get your news from? We are learning and adjusting our family financials just like the rest of you and this is a big fish to figure out. Please leave a comment or drop an email with your thoughts!
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