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hunterj20

06/06/19 3:00 PM

#283592 RE: BigNerd #283591

I will stay at cash or bet against the market the rest of this year there are too many risks. https://www.zerohedge.com/news/2019-06-06/fed-qe-why-rates-are-going-zero?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

There is evidence the cycle peak has been reached.

If I am correct, and the effectiveness of rate reductions and QE are diminished due to the reasons detailed herein, the subsequent destruction to the “wealth effect” will be far larger than currently imagined. There is a limit to just how many bonds the Federal Reserve can buy and a deep recession will likely find the Fed powerless to offset much of the negative effects.

If more “QE” works, great.

But as investors, with our retirement savings at risk, what if it doesn’t?