The Federal Reserve garnered headlines with the announcement that it will be gradually reducing its massive monthly purchases of bonds. Speculation was rife over the impact the removal of this alleged stimulus would have on the economy.
But as this episode of What’s Ahead reveals, the actual stimulus stopped back in February. Moreover, investors should be aware that the unprecedented way the Fed has been purchasing bonds poses real dangers for future inflation.
Investors should also factor in the continuing damage that shortages in goods and supply chain disruptions will do to economic growth, a situation exacerbated by destructive Biden Administration policies.
For these reasons, even though markets continue to rise, wise investors should keep some dry powder in the form of cash, as well as some gold, on hand.