Awesome Stocks

[gfp927z]

Or we might see a long drawn out decline over several years, like the 1973-74 period. Actually the entire 1966-1982 period was a net zero for the stock market.

I remember back then my dad and his fellow engineers would periodically get discounted shares of GE stock as part of their pay package, and they would immediately sell the shares before the built-in gains evaporated. Eventually nobody wanted to own stocks. But then in 1982 the Fed finally released its vice grip on interest rates, and the market took off for decades.

The collapse of Bretton Wood in 1971 was the big problem in those days, and it took over a decade to get the ship righted and the Petrodollar system fully in place. Now the dollar reserve system is in trouble again, and approaching the end of its run. Whether the replacement will be the SDR of the IMF, or some other arrangement remains to be seen. The timeline is another big unknown, and whether the transition will be gradual or sudden.


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