Is Ben Bernanke Responsible For All The Market’s Gains?
According to a recent Forbes article, You can Thank Ben Bernanke for 100% of the Stock Market Gains Since 2009.
Apparently, research tells us that 100% of the market’s gains since 2009 have come when the Fed has decided to buy bonds (quantitative easing). The few periods the Fed was not printing money, the markets went down.
The economy cannot support market prices. The only thing that can is continually printing money and flooding the economy with cash. If the Fed stops printing money, we will possibly see the markets fall to a value that’s more reflective of the current economy.
So, why is this important you?
If the Fed plans on “tapering” off their easing; you need to watch out for a fast falling market.
Of course, the market could take a nose dive before any tapering occurs as well.
So, are you hoping for the best, but planning for the worst? Or, like most people, are you hoping for the best, and planning for the best?
Now is a great time to review your retirement plan to make sure that your life savings is protected from all of this. Call our office at (775) 853-9033.