Second, interest rates are and will continue to rise. We just had the sharpest move up in interest rates this past two months on record, which continues to destroy the bond markets and effect bond funds negatively. This is all due to quantitative easing which Bernanke doesn’t want to taper now. The move up in interest rates has been so swift and dramatic that even the pros got caught.
Finally, the magical advance of the U.S. stock market has put investors assets in peril. When quantitative easing ends, the stock market will feel it, liquidity will reduce, and we won’t see regular movements on the way down, we’ll see major 5, 10, 20 percent pull backs in many of the household names and supposed “safe” stocks.
Isn’t it high time we end this hypocrisy of having financially reckless rule of our country’s economics and markets?
Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She can be reached at [email protected]