Let me start by saying I genuinely don’t enjoy writing “doom and gloom” articles. But the fact of the matter is that my role obliges me to protect my readers to the best of my abilities, which is why I’ve been forced to write so many lately.
And today’s article is no exception – I’ve been alerted to a sort of time bomb that’s sitting in YOUR retirement savings right now.
So you can pretend like it isn’t there and get wiped out like you did in 2008, or you can send in the bomb squad to defuse it. Either way, the bomb is ticking…
Over the past several months I’ve talked a lot about the Federal Reserve and interest rates, both here and in The Midas Legacy’s sister publication, Wall Street Informer.
And it’s for a good reason; even more so than I’d previously thought.
You see, interest rates are the driving force behind so many economic aspects, from loans to the value of the dollar to battling recessions and more.
Those are the sorts of things we track every day, including the impact it’s all collectively having on what the stock market is doing.
But I’ve also just been alerted to a certain consequence unfolding now that’s taken place over time as a result of the interest rate games the Fed has been playing…
And how those games have forced insurance companies to make risky moves in order to see the profits they’re used to. Because insurance companies will have investments in interest-rate-sensitive assets, like bonds, their profitability will often move in congruence with whichever way rate hike have gone.
Since the direction of interest rates has been overwhelmingly downward and then horizontal, the profitability of insurance companies has followed suit, which has then caused them to react in a dangerous way.
It’s really not surprising when you think about it – the big insurance companies messing about with the futures of others for the sake of today’s bottom line.
So what happens when one or more of these risky moves catches up to a major insurance company?
Whether it’s Berkshire Hathaway, State Farm, Allianz, Metlife, or some other major insurance company that’s had to gamble to keep shareholders happy, a false step could mean the end.
Now imagine the ensuing hysteria after one of those giant insurance companies crumbles…
It could easily be the case that the fall of a major insurance company could set off a stock market panic that sends this bear market off a cliff…
…and your retirement savings could be dragged right down with it.
That’s why you need to know how to call in the bomb squad on this ticking time bomb, which comes in 2 parts:
1. Going to cash – you don’t have to be fully invested all the times. You can also move to cash, which means you don’t lose money when the market crashed to the ground.
2. You can make money from a fall with something called “shorting” the market. This is how to win while everyone else is losing!
Shorting is a massive weapon at your disposal, and you’re going to soon need it.
So get ready for a major insurance company to fail, and for the market descent that will surely follow.
