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easy2012

Why The Fed’S Policy Approach Bothers Financial Types Like Me

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In essence, the Fed is working against the prudent types. It’s working against those of us who are trying to teach people basic and important principles about money and markets that can help one substantially reduce risk in a savings portfolio and generate substantially greater stability and predictability with regards to one’s future.

The thing is, we’re all riding through life experiencing various bumps along the way. I wish Jeremy Siegel’s concept of “Stocks for the Long-Run” applied to most of us. But it doesn’t because none of us can actually afford to just sock away cash in stocks and let it ride for 50 years. A little thing called life happens along the way. You go to school. You have kids. You buy a house. You retire. You break your hip. These things don’t adhere to this “stock for the long-run” mentality. They require careful planning and prudence based on the understanding that your savings portfolio must actually BE THERE when life happens

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But the Fed wants you to jump in a Ferrari and race to the finish line at top speed. It doesn’t think you’ll crash the car because it thinks the car is “efficient”. But most of us shouldn’t be in a Ferrari. We shouldn’t jam our families in a little tiny Ferrari with no real safety features whipping around town at top speed. Most of us should be in a Honda Accord driving the speed limit with our kids buckled up securely and driving in a manner that gets us from point A to point B without incurring the unpredictable crashes that often occur when driving 100 MPH in a Ferrari.

http://pragcap.com/why-the-feds-policy-approach-bothers-financial-types-like-me

A very good article that says most people just want to have a stable, low risk saving while getting on with life but the central bank policies are forcing people to race at 100mph. I suppose the same applies to the housing market when people suppose to want a stable, low risk home and get one with life rather then trying to speculating in it.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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