Wealth accumulation over the next decade will be predominantly driven by income.
Data signals indicate that the USA and other global economies are entering recession. Crashing retail sales, rising layoffs, falling consumer & business confidence, slowing service-sector activity, tightening bank lending, a 3-year low on the Baltic Dry Index, falling auto sales combined with spiking auto loan delinquencies, increasing credit card default rates — these are just a small smattering of warning signs pulled from this week’s headlines.
The unrelenting year-after-year gains across nearly all asset prices that we have enjoyed over the past decade are done. Moreover, they are highly-likely to reverse into losses as the arriving global recession takes hold. Couple that loss of appreciation with the job losses that accompany recessions, and the outlook is bleak for those looking to protect and grow their financial wealth over the coming decade. Such conditions make investing for income (inflation-adjusting and tax-advantaged where-ever possible) not just prudent, but imperative.
You can access this week’s entire extensive commentary HERE
