After an extended COVID initiated break from this blog, the current condition of the economy and financial markets make it feel prudent to resume commentary regarding the many Headlines and opinions of today’s environment.
As I sit here on Sunday, I am reading Janet Yellen’s statements regarding a possible recession (No recession, just a ‘slow-down’) and I can’t help but wonder when has she ever been right? See her commentary regarding transitory inflation, then her admitting she was wrong, yet we still allow her to resume her duties as one of the most important people in the financial world? It’s as if she’s almost surprised printing TRILLIONS of dollars would eventually create inflation. Neither her, nor Bernanke or Greenspan before her were ever right (or perhaps honest) with what their economic outlook was. Yet their wreck-less dovish policies and actions have helped put the US into more debt than ever in history.
The Real-estate bubble and the Dot.com era crashes were eschewed away until they could no longer ignore the obvious errors in their statements. Yet we still let them to go back to work? Is a recession coming? I sure think so, but I can’t say for sure. But I know I wouldn’t trust Janet Yellen with her predictions.
We see bubbles in almost every major area of the market. Fixed incomes are having their worst year ever, and the FED still faces a 9% + inflation number, (much higher if food, gas and food were calculated) so they will have to continue to raise interest rates. This does not help an overpriced stock market (yes, we see the market as very overpriced still), nor those who already hold their fixed incomes, or those who want to sell their house. If you are looking for some assistance on how to navigate these areas, and discuss areas we are seeing real value for our clients, please do not hesitate to call me.
Investment Adviser
Value Financial Advisers, Inc
3600 S. Beeler St
Suite # 300
Denver, CO 80237
Office: (303) 770-3030 Ext 1
Fax: (303) 773-9122
Seeking Value 