The Money Supply has Reduced this Year. A Strong Recession has followed every Previous Time

Dec 19, 2023

The Federal Reserve has been selling assets most of 2023. This is known as quantitative tightening. 

 

As a result, the money supply has reduced 3.3% since July 2022. This has only happened four previous times in US history; 1920-21, 1929-33, 1937-38, and 1948-49. Each time, a severe recession followed.

 

Warren Buffet has sold over $28 billion in stocks in 2023. He has stated stocks are expensive and has been pessimistic about the stock market and economy. He is following history. Warren Buffest is considered the best investor in history. Wall Street and investors are paying attention.

 

The Federal Reserve has recently announced they expect to reduce interest rates 0.75% by the end of 2024. A recession would reduce demand, inflation, and make interest rate reductions more likely.

 

If interest rates are reduced slightly, they would be at long-term average rates. These rates would remain higher than the extreme low rates over most of the past decade. This bodes well for fixed interest, bank money, bonds, and dividends.

 

Vanguard expects bond returns to be favorable for the next 5 -10 years. 

 

Your Personal Bank dividends are highly interest rate sensitive. Dividends will likely to increase for the next 5 -10 years.

 

 

Your Personal Bank allows you to earn cash flow on money you spent every year for the rest of your life! This can help you offset inflation.

 

Interest rate sensitive assets will thrive while asset values on most stocks and real estate will suffer. 

 

Your Personal Bank dividends are interest rate sensitive and will thrive in a higher interest rate environment. Dividends are likely to increase for the next several years due to higher interest rates. 

 

Your Personal Bank funds grow income tax-free and you can access tax-free. This shields you from likely higher future tax rates. You can grow your money safely, with guarantees, tax-free, and highly liquid.

 

Contact Ferenc at YourPersonalBank.com or [e-mail] for more info.