Useful insight in this discussion on consumer spending, ETF/mutual fund liquidity risks, common allocation mistakes in housing and investment portfolios, and the value-add lacking in mainstream financial advisory services. Worth listening.

Ted Oakley interviews Danielle DiMartino Booth about her outlook on global economics, inflation, U.S. housing, Federal Reserve policy, and how it will affect investors. Ted Oakley interviews Danielle DiMartino Booth about her outlook on global economics, inflation, U.S. housing, Federal Reserve policy, and how it will affect investors. Here is a direct video link.

The chart below since 2005 (courtesy of Isabelnet.com) shows that the value of equities has been dropping for the last six months, but their weight in broker-advised accounts remains near all-time highs at 62% of assets under management. Sentiment may be bearish, but the broker/advisory crowd still keeps client funds in the equity fire (where fees are most lucrative for the firms). So far, clients are still holding the exploding dynamite; this too shall pass. Capitulation selling is yet to come.