Risky Luxury Spending and Rising Rates Spell Trouble for 'Fake Rich' Americans
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"Fake rich" Americans paid premium prices for luxury items in 2020-2021 when they were scarce, but the value of those assets started crashing in March 2022.
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Many Americans are still spending way above their means, which will eventually lead to economic problems when businesses start seeing decreased profits.
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The Fed has raised interest rates 11 times since March 2022 to curb inflation, making it harder for businesses and consumers to borrow money.
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Higher interest rates lead to lower rates of return on investments like commercial real estate, impacting asset values.
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The 2024 election brings economic uncertainty, so consumers should be patient, stay informed, and make prudent financial decisions.