Federal Reserve Policies Have Distorted Markets - Is a Scary Stock Market Crash Needed for a Reset?
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The Fed's actions over the past 15 years have skewed capital markets, leading to inequities and high inflation. A reset is needed.
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Recent stock market declines have been inadequate to shake up investor mindsets. A scary crash is likely required.
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There are many unknowns about how investors are positioned. Leverage raises risks.
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Rapid stock price drops can trigger "circuit breakers" and emotional reactions.
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Having cash reserves helps investors avoid mistakes when the market falls and emotions take over.