So no one knows precisely what is going to befall us in 2014, so everyone must remain circumspect about any and all predictions, even the ones on my radio show, Financial Myth Busting. But as mindful as we are of the risks of a forecast being wrong, it seems increasingly self evident that financial systems in the developed economies are reaching extremes. In 2008 when the financial crisis happened, the U.S. debt levels were at $9.2 trillion and recently the Obama White House stated that our national debt levels will be $20 trillion by the end of the decade, which will be a 140 percent of our current GDP.
So my advice going into the end of 2013 and into 2014 is to follow the economy and financial markets closely to make the changes that suit risk tolerances and time horizons. Just be prepared!
Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She can be reached at [email protected]