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Market Liquidity From Boom To Struggle
In 2021, the markets boomed due to injecting a lot of money into the economy. However, in 2023, the reduction in liquidity caused the markets to struggle. Efforts are now being made to stabilize liquidity by adding more money into the system. When money goes through the government, it's still money, but it doesn't count as part of the banking system. By using certain channels, money is taken out of the financial system, reducing liquidity.
Watch more of this short video from Wait, Inflation Is Going To Start RISING Again This Summer? | Jim Bianco.
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There’s no doubt that it's a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?
Let us help you prepare your portfolio just in case the future brings one or more of the following: inflation, deflation, a bull market, a bear market, a market correction, a stock market crash, a real estate bubble, a real estate crash, an economic boom, a recession, a depression, or another global financial crisis.
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IMPORTANT NOTE: The information and opinions offered in this video by Wealthion or its interview guests are for educational purposes ONLY and should NOT be construed as personal financial advice. We strongly recommend that any potential decisions and actions you may take in your investment portfolio be conducted under the guidance and supervision of a quality professional financial advisor in good standing with the securities industry. When it comes to investing, past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in partial or total loss.
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