By Mac Slavo
“Pride goeth before destruction, and an haughty spirit before a fall.” – Proverbs 16:18
Fresh stock market highs are giving everyone the holiday season cheer that encourages spending and inspires optimism about the future under the incoming Trump administration.
The market could hit 20,000, and investors are ecstatic… but reality is still looming over the desperately vulnerable economy.
The Federal Reserve has announced that it is raising rates, and there is every indication that things could take a turn for the worse in the near future – particularly as it has been Fed stimulus over the past eight years that has been propping up the stock market.
Now, as the cost of money increases, interest payments are mounting and debts may become unmanageable for some.
But the so-called “fear gauge” on Wall Street, a volatility index, indicates that there is a disconnect with the disturbing systematic problems lying just below the surface, as nearly everyone inside finance is feeding off of short term numbers and a positive news buzz.
via Market Watch:
As stock-market indexes march to fresh records on the back of a monthlong rally in the wake of Donald Trump’s presidential election win, U.S. investors don’t appear to be daunted by the unrelenting …read more