Welcome to Gratke Wealth, LLC eNewletters, where we focus on how to invest during the biggest financial asset bubble of the past one hundred years.
Note the chart below, value of U.S. Stock Market relative to U.S. GDP output. Hopefully, this graph leaves no doubt in the reader's mind about the biggest financial bubble in the past one hundred years.
"QE* was designed to punish responsible financial behavior."
—@spomboy
* QE= Quantitative Easing, where central banks inject/print new money into the economy via low interest rates which distorts asset prices.
In recent weeks and months, the energy situation in Europe has become dire. This topic is something we monitor daily and have discussed for some time, most recently in our ‘Mid-Year 2022 Review’.
The Federal Reserve, the U.S. Central Bank, has announced that they will raise interest rates starting in March (2022). This rate hike will be the first in over a decade (2018 being an exception). All asset prices over the past decade and more, stocks, bonds, and real estate, are all valued with these low-interest rates; thus, we see market uncertainties today given higher interest rates.