Epochal Change in the Financial Markets

Takeaway: We are facing a new economic reality and the rules of the past no longer apply. Understanding the new rules and having a plan to navigate them will help you to continue to build your wealth.

Bio:  Todd Tresidder graduated from the University of California at Davis with a B.A. in economics and a passion for creating successful businesses. A serial entrepreneur since childhood, Todd went on to build his own wealth as a hedge fund investment manager before “retiring” at 35 to teach others. Today, he provides advanced investment and retirement planning education at FinancialMentor.Com showing you what works, what doesn’t, and why based on a depth of proven experience.

 Highlights from this episode: 

• We are entering a new “economic epoch” characterized by high inflation after a long period of low inflation. Interest rates are also now in an upward trend after declining for decades.
• The government response to COVID with massive fiscal stimulus was a key trigger that helped kick off these changes. This led to inflation coming back in a structural way.
• In this new environment, conventional investing strategies like passive index funds are likely to struggle and have poor real returns for 10-15 years. Tactical asset allocation is better suited for this period.
• Financial repression by the government is likely, meaning inflation will outpace asset returns but it will be gradual enough that most people don’t fully realize it.
• Various risks like duration risk and liquidity risk are emerging that can turn into solvency crises. More volatility and turning points are expected as the economy goes through this transitionary period over the next decade plus.
• Understanding these dynamics is key so individuals can adapt their investment strategy and spending to preserve wealth through this economic shift. Being prepared ahead of time is critical.

https://www.financialmentor.com/invest

Previous episodes with Todd:

http://richersoul.com/ep-0020-richer-soul-creating-an-investment-process-with-todd-tresidder/

https://richersoul.com/ep-107-using-leverage-to-increase-wealth-and-decrease-risk-with-todd-tresidder/

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Some music provided by Junan from Junan Podcast

Any financial advice is for educational purposes only and you should consult with an expert for your specific needs.

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