a rising stock market may not be as rosy as it sounds. we must beat the loss in buying power of the u.s. dollar. as we all know, the stock market may be the barometer of the economy for the public, but not actually a valid indication of our economy. as we have mentioned before, the dow can soar to 40,000 and stockholders may still suffer. since all currencies are presently fiat, we much carefully search for wealth preservation strategies.
the new buzz word will be "inflation adjusted". we may have apparent profits with record highs in the stock market, but one must be careful in analyzing the numbers. we must look at inflation adjusted value of stocks and then estimate profit/loss after accounting for capital gains taxation. ..., and it wouldn't surprise me in the least that they increased the capital gains tax, iRA withdrawal penalties, etc,
this topic you discussed briefly before
so it remains a crap shoot. we may possibly go to 40,000 on the dow, or as others have suggested like faber, the market may tank soon. either way, there is much peril for investors. it has been said that our present economic state will be as good as it will be in the forseeable future and that from here on out it will be a most difficult battle for all of us to preserve personal wealth. |
