Like it or not, the economic prosperity the United States enjoys today may dissipate sooner than expected. Come the fall of 2015, we can anticipate that all of the market gains made over the course of the past year will be pulled out from under us, delivering a debilitating blow to the economy.
One of the primary reasons we can expect impending economic fallout? Nobody’s worried. As with silence before a storm, news media and government alike are mum when it comes to any trepidation about the state of the economy, and instead are focused on job growth, the strength of the stock market and lower unemployment rates. There’s no denying that the economy is doing better than it has in years, but even in previous times of prosperity, there was at least a small faction of experts voicing skepticism and doubt. Not so today.
According to CEO of Bennett Group Financial Services, Dawn J Bennett, this “radio silence,” (with the exception of her own radio talk show), is perhaps the surest sign that something’s being overlooked. And that something, Bennett believes, is a slew of asset bubbles that have been expanding in a number of major industries, including housing (which brought down the economy in 2008). These asset bubbles are the product of unsound policies like the overproduction of money, the Federal Reserve’s hand in the stock market, and the continued presence of incredibly low interest rates.
Consider too that traditionally, commodity prices reflect the health of an economy. When prices or assets increase in value, such is supposed to be a reflection of a strengthening economy. Yet, we know that currently the world market is experiencing low growth and low inflation, and that our stock market in no way aligns with the performance of most major companies. In other words, these rising prices are not an indication of a growing economy. Further, the optimistic economic outlook the media and government continues to promote will only exacerbate the asset bubble conundrum; the more we taut our economic strength, the more investors will invest, the higher prices will rise beyond their actual value, and the sooner we’ll experience a bubble burst.
In all, though many like Federal Reserve Chairman Ben Bernanke will say that asset bubbles are difficult to forecast, the reality is that the “symptoms” of asset bubbles are quite apparent; it just takes a critical eye to be able to see them for what they are.
Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.
For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com
Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.
About Dawn Bennett
Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com
She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.
She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett firstname.lastname@example.org