Helping Small Business Owners Produce Freedom So They Can Enjoy an Abundant Life and Live Their Passion & Purpose!
Trapeze and a Safety Net
Written by Steve | Published: |
In the 2019 remake of the movie “Dumbo” there is a scene where the ringmaster of the circus drops the net for the trapeze artist to build suspense for the crowd.
In the film there is a close up of the trapeze artist’s face. Although very skilled and having years of experience, you can see the worry that is created by raising the stakes on this stunt.
Last week the Fed posted their data stating that inflation came in at 7%. This raised a lot of eyebrows and concern across the nation. The only good news (in a weird way) is that the expectation was 7.1% so it actually came in lower than expected…phew…ha ha.
You don’t have to be a mathematical genius to figure out that if your bank is paying you 0.25% interest per year and inflation is at 7% that your money is no longer growing safely in the bank.
The concern that I have is that this is pushing people to take more risk in their portfolio than is needed especially with bonds underperforming.
So where is everybody going with their money… the stock market, real estate, gold, crypto???
This issue is that while the money printing Fed might be pushing up values in the short term, what happens when the music stops and the markets take a 10%, 20%, 30% correction or more.
It’s not a matter of if…it is a matter of when…
If any of you look at the “Buffett Indicator” it is currently showing our markets are at 211% valuation. Which means that the value stated is more than double what it’s worth.
How are you navigating this in 2022?
Wouldn’t it be nice to have assets that grab the growth of the market on the way up but avoid loss on the way down?
Is there such a thing?
Yes, we help our clients with this strategy everyday.
It may or may not be right for you, but it could be a place for some of your assets.
We live in a strange world right now. If we can help you navigate through some of this mess while helping you keep your safety nets up let us know how we can help.