Trade The Journey

Trade The Journey

Shocks vs Damage

If you watch the news, you’re probably aware that some kind of downturn is in the future. No one knows how severe the next downturn will be. We are no doubt in the longest bull run in history. However, the market has been very volatile lately.

After watching the Presidential speech at the oval office advocating support for a wall and border security. The question is, what is happening behind this turmoil?

The Mueller investigation. The trade deal between China and U.S. Slowing certainty in the housing market. Rising student debt. Rising National deficit.

What is happening to the economy and sentiment ?

Well, people are undoubtedly losing faith in the government and the economy. If you really think about what has transpired, the issue has taken precedence over the welfare of the citizens. The government has bled into the economy more than ever. Not only in terms of wavering support and questionable motives by the people in office but also by directly affecting its citizens.

The pay raises have also not matched the good times. There are phases of people in the economy who are becoming structurally unemployable. There are large deficits mounting in the student loan markets, as graduates are being forced to move home. The middle class is shrinking unable to support the system that the wealthy and poor are contributing to in varying amounts. The good jobs are disappearing despite promises that it would be different and thats largely due to globalization and technology.

But more importantly we are seeing a phase of high debt and beneath the apparently good times, the numbers show that the economy is declining. They say it is best to keep track of the job and inflationary environment as it will dictate what the FED will do. The problem is that the FED may be running out of temporary fixes. Lowering the interest rates may not work this time.

So what can we do to remedy the unfortunate consequences we will face for unwise decisions?

We can develop more than one stream of income. By monitoring expenses and forecasting future expenses it can help us to prepare for future emergencies. We can also research what changes in technology and globalization will have on your current job/business.

By being prepared, you’ll also be able to take advantage of opportunities in the future.

Thoughts? Corrections?

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