ITA Wealth Management

So you thought the “Lost Decade” was bad.  Prepare for Wall Street to extract another 20% from your investments over the next ten years.  At least that is the conclusion Paul B. Farrell writes about in his article, “8 Reasons Wall Street Loses Another 20% in This Decade.“  Below is reason #1 and Farrell hits the bullseye with his analysis.

1. Foreign policy and wars. The investment world’s far more volatile and dangerous today than in 2000 when Bush was elected. America started a preemptive war-of-civilizations by attacking Iraq under false pretenses, the single biggest foreign policy blunder in American history, a war that’s had the unintended consequences of playing into the hands of our enemies, made them stronger, and unnecessarily cost us trillions, weakening America as a military and economic power, with no end in sight.

It is rare to see Bush’s Folly expressed so clearly in print.  Farrell also hammers Fed Chairs Greenspan, Bernanke, and Reaganomics in general.  Read below.  These two quotes from the article just begin to get at the nub of our current economic problems.  Read the entire article.

2. Monetary policy and the Fed. Your world of investing is also in a far worse condition as a direct result of former Fed Chairman Alan Greenspan’s too-long legacy of free-market Reaganomics ideology funneling endless cheap money to Wall Street banks. Worse, three regional Fed presidents recently endorsed an indefinite continuation of current Chairman Ben Bernanke’s cheap money policies, thus accelerating the next bubble. But worst of all, when he had a chance to prove he was a real change-agent, President Obama made the biggest domestic policy blunder in history by reappointing Bernanke, a Greenspan clone, a Reaganomics ideologue and a Trojan Horse protecting Wall Street with trillions in cheap money loans, guarantees and toxic asset takeovers, all hidden from taxpayers.

More of Farrell’s thoughts can be found at Wall Street WarZone.

What is missing from the Farrell missives is what to do.  How does one invest other than to become a survivalist?  That is the challenge we are addressing over on the Premium Content side of the blog with some Strategic Asset Allocation portfolio plans.

In a later Premium blog post I will reference a less apocalyptic article by Robert Arnott, an academic who is attempting to provide guidance to investors who recognize the great days of the stock market are over.

Photograph: Desert Botanical Garden in Arizona

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