Be content with low single digit returns.
That’s the word from Bill Gross, billionaire bond manager at Janus mutual funds.
He believes the Federal Reserve is a ponzi scheme that will end with austerity programs.
What the Federal Reserve is doing is not working. The stresses of Obamacare and the general lack of confidence among Americans regarding the economy have taken their toll.
Running Out Of Income
Retirees now find more than ever that running out of money is becoming a panic, rather than a concern. With banks now charging customers to hold money in Japan, and in Europe, America is just days away from such an event. Considering the fact that retirees are pulling in the ropes, it’s a good bet any economic spending increases won’t be coming from them.
In fact, most retirees and pre-retirees are taking shelter and not just in financial ways. Many are selling their homes, moving to states with no income taxes, and pulling in their spending. It’s the hangover of the crash of 2009.
The inability of economic growth to gain momentum through the actions of the Federal Reserve, illustrates there are much deeper issues that can’t be solved by Government manipulation. What those issues are, and the extent of economic risks that exists is unknown.
It’s a good bet that once the real risks surface, the markets are going to take a tumble.