When you turn on the news or read articles online, you might come across a big financial headline that feels a bit jarring. Are these sensation headlines something we should pay attention to or take with a grain of salt?
To start, Jamie Dimon warns Americans of an “economic hurricane.” With everything going on, are we already in one? The market has been declining. Nobody knows the future. You can process all this data and make a prediction but that doesn’t always mean it is right.
We are seeing continued spending and continued saving. Mortgage rates are in for a bumpy ride right now as interest rates are raised. We’re seeing hyperinflation right now. The Federal Reserve doesn’t have as much control as we may think.
Another thing in the headlines is the twilight of social insurance. It’s important that we find a solution for Social Security, but politicians aren’t eager to be the ones to rock the boat. For those under 50, you may want to be extra prepared for a possible reduction of benefits or what-if scenarios in retirement.
Finally, should you be buying gold? Nathan says this is not a great investment. If you want to watch that kind of volatility, you are better off in the stock market. Don’t forget that gold means you have to store it somewhere. It’s never been a good investment historically. It won’t make anything for you.
Listen to the entire episode or skip ahead using the timestamps below.
0:56 – Are these sensational headlines worth paying attention to?
1:47 – Are we in an economic hurricane?
3:43 – Predictions aren’t always right.
6:04 – Mortgage rates are in for a bumpy ride.
9:35 – Facing the twilight of social insurance.
14:15 – Is now the golden opportunity to buy gold?
A Point Of Wisdom:
“Gold is not a good investment (it’s great for jewelry). The volatility that gold has is crazy for just a simple 4 percent return. You’re much better off to get that reward from stocks than you are from gold.”