Indeed, conflict seems to be the overarching theme here. Current trends can’t continue, and there will be disagreements over which way we go.
Driving this meta-theme is the perception of limited opportunities and resources. Monetary policy has been drafted to do what Congress won’t do with fiscal policy, because it doesn’t want to choose between tax increases and higher deficits. Countries want a bigger piece of the pie, and it doesn’t matter if the pie ends up being smaller. Large parts of the population feel like they haven’t gotten their fair share and that the pie is getting even smaller.
There are certainly opportunities here, but the risks are very apparent as well. This is the backdrop against which we have to look ahead to the next quarter and into the future.
Brad McMillan is the chief investment officer at Commonwealth Financial Network, the nation’s largest privately held independent broker/dealer-RIA. He is the primary spokesperson for Commonwealth’s investment divisions. This post originally appeared on The Independent Market Observer, a daily blog authored by Brad McMillan.