Digital Currency Is Cryptocurrency The Biggest Thing In The Investment World? -July 2, 2017

Guest: Terry Brock
Now, although we’re looking at a very specific area of the market on this week’s show. It is always important to consider things within the broader framework, if you’re a regular viewer you know we’ve talked a lot about the stock market in general. Being wildly overvalued in relation to real corporate earnings today, but bear in mind also that anyone lives G.D.P. growth for the first quarter. Annualized G.D.P. growth was only point seven percent, which is a significant decrease from the two-point-one percent rate of growth in the fourth quarter of two thousand and sixteen. Now compare those numbers to the fact that the Dow is up seven point four percent since the beginning of the year and the S&P Five hundred is up eight point six percent since the beginning the year. And the NASDAQ’s up fifteen percent. The point is that investors and digital currency and blockchain technologies aren’t the only ones speculating these days. As I’ve discussed before you could argue that big investors in every sector of the market have been speculating since November about Donald Trump’s success pushing through his economic agenda. As of now, however, that speculation still appears to be based mostly on optimism despite an almost nonstop turmoil on setbacks from the White House. Optimistic that their overvalued stock prices will eventually be justified by a G.D.P. growth rate of much closer to four percent. As of course President Trump has promised. As I put it before Trump’s value has been factored into the market prior to his having any actual economic impact. Speculatively in other words, but as I’ve also mention all this optimism might not be as great as it seems when you consider one more detail. And that is that the ten year U.S. government bond, the ten year Treasure rate has actually fallen since the beginning of the year from two-point four-four percent to two-point one-five percent as of this time in June. And of course, that means that money has flowed into the bond market and bond prices have come up. So not everyone is putting all their faith in stocks, there’s really money going into all sectors of the market. Stocks, as well as bonds and that, ‘s the kind of detail that some financial advisers might overlook if their business model revolves mostly around stocks and stock mutual funds. But it is an important one to consider if you are part of the Income Generation. If you’re over the age of fifty or if you’re within ten years of retirement and haven’t yet taken the steps to lower your market risk.
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