Friday, September 16, 2011
Market volatility is a Consequence of Zero Interest Rate
Marc Faber : ( Stock Market volatility ) well I do not think it is a sign of a healthy market but it's let's say a Consequence of Zero Interest Rate , I have argued for years that the Federal Reserve with its artificial low interest rate instead of creating monetary and economic stability has created more instability by creating the NASDQ bubble the housing bubble the commodities bubble and now creating a giant government debt bubble and so we are going to have a lot of volatility every year for the next few years where markets will go up and down for at least thirty percent per anum and I think in real terms , inflation adjusted terms it will not make much headways - in Yahoo Finance
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Since the market will be so unpredictable, would you still suggest investing in 401k?
ReplyDeleteThank you and enjoying your blog.
You should stop paying into your 401k and start buying gold each month. And make sure your 401k is not invested in US or European debt; emerging market debt/equities will be better long term (5+ years). Sometimes the 401k options are limited, but above all make sure that your money is in a place where it will not be wiped out due to a collapse in the Euro or USD
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