Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

April 2, 2022 | Another Train Wreck in the Making

Danielle Park

Visit Guest's Website
Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

Below is the chart showing the present 46% allocation of household net worth to equities, versus just 15% to bonds and 16% to cash. This level of risk-concentration to equities was seen at the 2000 tech bubble top and, to a lesser extent, the 2008 bubble top. However, allocations to the least risky bonds and cash are lower today than those previous risk cycle peaks. As a result, household net worth is heavily exposed to the downside of a bear market and recession. It is especially precarious because unemployment will rise as equity and housing prices fall—another train wreck in the making.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

April 2nd, 2022

Posted In: Juggling Dynamite

Previous: «

Next: »

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.