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With a Recession on the Horizon, How Can You Protect Your 401(k) Assets?

The stock market bull run of the past few years has created more than a few 401(k) millionaires. But with economic headwinds increasing, including a trade war that shows no signs of abating, many investors are getting nervous about just how long they’ll remain 401(k) millionaires. Investors who have made their money in stock markets are aware that a stock market crash could wipe out their wealth just as easily as the bull market grew their wealth. Many investors, particularly [...]

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The Chorus Is Growing: More and More Are Warning of Recession

Every day brings more and more news that market participants are warning of the risk of a severe recession. Experienced traders from both stock and bond markets are positioning themselves to protect themselves against the downturn, which they universally agree will be catastrophic. The only question now is, with stock markets still elevated, will mainstream investors heed their warnings and listen? One of the more recent voices warning of a market crash is prominent bond investor Jeffrey Gundlach, who manages [...]

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Will the Never-Ending Trade War Be the Ultimate Undoing of Stock Markets?

There has been a lot of criticism of stock markets this year, particularly when the Dow Jones and the S&P 500 reach new highs based solely on expectations of a resolution of the trade war with China. It seems that every time President Trump, or anyone in the administration, gets in front of the cameras to say that a trade deal is coming soon, stock markets jump a few hundred points. But now we’re seeing the flip side, that [...]

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Decline in World Trade Another Indicator of Slowing Economy

Every day seems to bring more and more news of headwinds facing the economy. Now international organizations are warning that global trade growth is slowing, an ominous indicator that the world economy continues to slow. Earlier this year, analysts at the World Trade Organization (WTO) forecast a 2.6% increase in world trade this year. Now they’ve cut that forecast by more than half, to only 1.2%. And there’s every indication that the trend now is for world trade to begin [...]

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China Continues Moving Away From Dollar, Into Gold

World reserve currencies don’t remain reserve currencies forever. The British pound and its gold standard once ruled international finance, but after abandoning the gold standard during World War I and unsuccessfully attempting to reintroduce it after the war, the pound ceded its reserve currency status to the US dollar. Since the end of World War II the dollar has stood atop the world as the primary reserve currency, used in international trade and in commodity markets around the world. But [...]

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5 Things Gold Investors Have to Be Thankful For

It’s that time of year again, when families around the country gather together to eat turkey, watch football, and give thanks for everything they’ve been blessed with over the past year. Investors are no different, particularly given the performance of stock markets over the past few years. But for many investors looking warily at stock markets and wondering when the bubble is going to burst, their thankfulness is mixed in with a growing sense of unease. Thankfully, there are other [...]

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Prominent Billionaire Investor Betting Markets Will Crash by March: Is He Right?

Ray Dalio is one of the world’s richest men, one of its most prominent investors, and the founder of one of the world’s largest hedge funds. He’s also bearish on the future of the economy, betting $1.5 billion that the economy will turn south before then. If stocks turn south by the end of March, Dalio could win big. If they don’t, his firm is out over a billion dollars. So will he end up being right? There’s obviously a [...]

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If Corporations Stop Buying Stocks, Might Foreign Central Banks Step In?

A key component to the surge in stock prices over the past several years has been the record high level of corporate stock buybacks. Corporations have been issuing trillions of dollars in debt in order to buy back shares of their stock. That boosts earnings per share, a key metric used to determine executive compensation. In that way corporate insiders can boost their compensation while still making it look like the company is in sound financial health (if you [...]

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The Debt Bubble Keeps Growing: Are You Ready for It to Burst?

Most people realize that the amount of debt in existence worldwide is enormous, but how enormous isn’t immediately obvious. Many people may even labor under the erroneous impression that the debt bubble has improved since the financial crisis, since surely businesses and individuals learned their lesson from that crisis. But the reality is that the debt bubble isn’t just bad, it continues to get worse and worse all the time. By the end of this year, the total amount of [...]

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When Is Quantitative Easing Not Quantitative Easing?

For years, market analysts have wondered when the fourth round of quantitative easing (QE) would occur. We all remember QE1, QE2, and QE3, which mainstream economic analysts praise as having saved the financial system from ruin in 2008 and afterwards. But the trillions of dollars created during those bouts of easing have created an enormous bubble that will risk bringing the financial system down with it once it bursts. It was all but certain that the Federal Reserve would [...]

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