The Fed’s much anticipated release of its survey of U.S. consumer finances reports that a hypothetical family richer than half of the nation’s families had, in 2010, a net worth of $77,300 as compared to $126,400 in 2007. That’s a whopping drop of nearly 40%. In fact, that is galloping poverty! Moreover, the median family income also fell to $45,800 in 2010 from $49,600 in 2007. No, quantitative easing does not solve all problems; far from it.
The only way to beat such a growing reality caused to us all by a fiat currency system and uncontrolled credit and debt creations is to own the right asset classes at the right time, i.e., NOW. Failure to do so will only lead to further net worth loses. Oh, and in case you're wondering, GOLD is the only item shown on the chart below to be a buy ... except for periods of strong growth. Do you really think THAT is right around the corner?
For those of my greatly belabored readers who are still invested in the stock market (hmm-mm, like to live dangerously, dont'cha?) here is a chart that gives you at least a hint as to "what to do when". But good luck in figuring out from government statistics whether we are in inflation or deflation. Fear and Greed aren't that hard, just check your gut feeling. Here is the chart:
