Our long-term economic outlook
These are difficult financial times, and the recent wild stock-market swings have left many advisors ill-equipped. Wealth Management Northwest has a plan.
Our current financial downturn has been precipitated by the credit crisis and the burst of the housing bubble, but the immediate crisis is likely only the beginning of a much longer potential recession brought about by a factor called the “Baby Boomer Bust.” Economist Harry Dent wrote about it as long ago as 1992, and we have had ample time to understand his forecasts and prepare investment strategies to both Preserve Capital and Prosper during a severe and protracted economic downturn.
As a result of the aging Baby Boomer generation the United States is now entering a period where there are simply going to be fewer adults to fuel consumer spending, which accounts for over 65% of all spending in our economy. The repercussions of this significant loss of consumer base will be wide-ranging, and usher in a long and difficult financial environment.
The outlook is challenging, yes, but foretold is forewarned, and we have a long-term economic outlook:
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Protect your assets
Our first priority in a bear market is to protect your wealth. As we move through this period of uncertainty and decline following the credit crisis it will be important to preserve the value of your existing assets.
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Use the oversold market & government stimulus
We anticipate a pair of transitory booms caused by the oversold stock market and the government stimulus (A and C in the chart above), which will allow us brief, but critical opportunities to give your portfolio the “leg up” it will need to move with strength into the long period of economic decline brought about by the Baby Boomer Bust.
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Lock in high interest rates
As the stimulus raises interest rates (C in the chart above), we will lock in these high rates on Treasury, Corporate, Municipal and International bonds to assure that your portfolio will weather the following worldwide recession.
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Weather the storm
With your assets protected in high interest bonds, you will be well prepared for a period of income and appreciation while others are experiencing prolonged losses (D in the chart above).
As always, it is prudent to remember that predictions can be wrong, and past performance is no guarantee of future results, however with preparation and foresight Wealth Management Northwest is ready to help you work toward a secure financial future in this very challenging economic climate.
Now is the time to get started.
