Averill: A realist firstWritten by Cap Averill II | | firstname.lastname@example.org
Any asset can go up in the future, I am the first to agree. Though I am an optimist, when talking investing, I am a realist first.
Investors should realize that for the last 30 years interest rates have been dropping, so it has been like going downhill for the economy.
As a result we (as a country) were going way too fast when we hit the bottom of the (interest rate) hill, and now there is nowhere to go but up.
Rates are at zero, they will go up the next move. And that puts downward pressure on real estate equities and commodities. Even if these grow, which they still can, they grow slower because of these pressures.
My point is that we are not going downhill any more.
We are now coasting on level ground with a big (interest rate) mountain in front of us.
But just like in the desert, you cant tell how far away the mountain is, but it is there-
It is not a mirage, it is real, and no one has ever climbed this mountain.
Where I believe that deflation outweighs inflation risk right now, inflation will spike at some point
So that means all historical charts are null and void. We are truly in uncharted waters.
Anybody notice that the only growth in the economy has coincidentally coincided with governmental leveraging?
Anybody noticed diminishing returns?
Sorry for the harsh realities, but I truly believe people need more of this type of perspective, and information. this is a whole new ball game.
Please tune in to WGTE channel 30 PBS September 2 at 4 p.m., for my documentary “Wants and Needs.”
Visit http://www.capassociates.net/ for more information.