Current Outlook

"The Minsky Moment is approaching...."

As the U.S. economy continues to sputter despite massive government spending, investors should be considering how to survive the dollar's implosion.

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
September 23, 2023