'Tis Only My Opinion - January 2024 - "Hope springs eternal  ...." is now available.

Adrich Corporation

Since 1965 ...

Current Outlook

"Challenges ahead...."

Rising tensions around the world suggest that the U.S. economy will not see a soft landing. While the FED may be suggesting that interest rates have reached the peak level, the burgeoning federal and state deficits continue to increase.

Not many  current politicians have the courage to advocate that government spending and the federal debt needs to be reduced.

With the current stated federal debt about $33 trillion (about 100% of true GDP) and the GAAP federal debt over $200 trillion, the day of reckoning is just around the corner.

President Biden granting federal employees a 5.2% pay increase in 2024 brings the day of reckoning closer.

The role of the U.S. dollar as the world's reserve currency is changing as Russia, China, Saudi Arabia, India, Turkey, and Iran among others are bypassing dollars in trades involving oil and other commodities.

Cash deposits in banks are shrinking as investors seek higher interest rates in other financial instruments.  The FED is raising interest rates while draining the banking system of reserves ... the stock market will be affected negatively. Fitch has suggested that more banks will be downgraded shortly.

Economic data is revised and methodology changed to present a false picture for the public.

Major U.S. real estate companies are declaring bankruptcy as U.S. interest rates approach 6%. Both credit card and auto loans are looking at increasing delinquency rates.

The growth in credit card debt is greater than the growth in personal income as individuals try to maintain their standard of living.

Do not be surprised if the NASDAQ falls through 8,000, the SPX to 2,500 and the DJIA sees the 25,000 level.

Until the Biden Administration takes seriously the impact of open borders and a failed education system, the outlook is less than rosy.

Remember -- "Only purchasing power counts!"

Remember to ... "Keep It Safe, Simple and Stay Focused!" going forward.

Fred Richards
January 1, 2024 

Fred Richards' has published his 'Tis Only My Opinion articles for many years on a wide range of subjects and many are archived here. The current article is highlighted above.

Mr. Richards is a graduate of SMU and HBS, and a member of Who's Who in the World since 1965.

In 2017, Mr. Richards received the Marquis Who's Who Lifetime Achievement award.

Last updated - January 29, 2017
Adrich Corporation - Copyright 2001-2024 - All rights reserved.