As many of you know, we have had historically low interest rates for a long time now. The Federal Reserve has printed money and grown their balance sheet to levels never seen before, and the US is running record deficits at the same time, during a supposed strong economy. This is obviously a cause for concern.
I recently came across a CNBC video (yes, I know), and the guest, Byron Wien, Blackstone Private Wealth Vice Chairman, had an incredible segment where he explains this issue in just ~2 minutes. Worth a watch - https://youtu.be/C4QjDJuyfek?t=186. Even the interviewers were stunned.
So what's the plan when the balance sheet expansion and QE4 or whatever you want to call it comes to an end? Buy gold? Buy Puts? Stay invested and average down?
I'd love to get some discussion going on this. It's a real issue and not something that can be ignored forever.
Submitted November 27, 2019 at 07:26PM by LuxGang https://ift.tt/2OPOUgn
