SPY- Is it Time to REALLY Worry About Inflated Markets

Stocks. Precious metals. Real estate. Cryptos. Just about every major investment class under the sun is sitting at or near all-time highs. But easy money is a drug, and a very dangerous one at that, notes Nilus Mattive, editor of Safe Money Report.

You see, it’s government debt itself that keeps hitting one record high after another. So, sure, both politicians and investors are cheering the recent interest rate cut by the Federal Reserve. It helps paper over our fiscal problems, and it keeps markets high. However, it’s only a temporary panacea.

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It doesn’t curb government spending. It doesn’t force investors to scrutinize what they’re actually buying. And it could stoke a still-simmering inflationary fire. I’ve been following the markets professionally for more than 25 years now. And this has been the consistent pattern over that entire time period.

Even using the government’s own manipulated CPI numbers, something that cost $100 in 2000 now costs $191. That means our money has lost about half of its value since I got my first job on Wall Street.A graph showing the price of a dollar AI-generated content may be incorrect.

Meanwhile, monetary policymakers have also created a series of rolling bubbles and collapses…each one bigger than the last. I’ll be the first to tell you that markets could keep inflating for months or even years. But I also know from experience that it could just as quickly end at any given time…and an ensuing crash could be absolutely devastating to anyone who isn’t prepared. You only need to go back and read some Safe Money Report issues from two decades ago to see how both things are true.

I feel much the same way right now.

Of course, anyone can say “the sky is falling” over and over again. My goal is to help you continue making money while still staying as safe as possible. That’s why I always recommend having an adequate cash cushion above all else. I think you should stay diversified across all the major asset classes, too.

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And I suggest having the bulk of your stock portfolio in high-quality, income-producing companies that will do well whether inflation picks up, the economy slows, or both things happen at the same time. It’s also fine to have a small portion of your money in more aggressive plays…as long as you also keep booking outsized profits as they materialize.

In other words, make hay while the sun shines. Just keep plenty in the barn, too.

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