Economy Blowing Bubbles Ready to Burst!

To begin, let me just start with a little history. It was sometime around that Fall in the year of 2008 when everyone had their eye on the stock markets and the gross domestic product-GDP.  It was the first time the GDP dropped into negative territory in years, signaling a red flag(in my mind). So just being me and the way I am, I made a phone call to our Ameriprise agent about our 401K account. I discussed with her my concerns of a possible recession that analyst kept talking about, but no one really seemed to care. Apparently, Ameriprise didn't seem to care either. Why would they? Wasn't their money, right? I was told everything will be fine and not to worry. Well, I didn't care what she said.  I worried.


So I waited. I simply watched how most of the U.S. kept enjoying life like there was no tomorrow. Driving around in expensive cars they could not afford, having parties in the their homes in which they paid an arm and a leg for, and being totally naive about what was brewing ahead. But hey, it's all good they thought. I on the other had, became very leery as I continued to watch.

Then came September. I remember that month very clearly as I watched the Dow keep selling off.  We held tight until the a big sell-off came on the 29th, ending up losing $20,000 in that day alone.  I called our agent and had her pull everything out immediately.  She felt I was being ridiculous but I insisted and it was not her money to play with. It took us years to get where we were and we weren't going to lose another dime.  She did as I said and I closed our accounts with her shortly after. We moved all funds to another company and straight into a Money Market account to wait it out. It was a company that allows you to make your own moves.  The way I have done it ever since.

From that day on, the market kept going up and down for months, not knowing where the hell it was going, nor did most investors. Sure enough, the Dow hit a 12 year low of around 6,500 and the GDP ended up falling every quarter for the next year and a half.  Full blown recession!  Most lost jobs, their homes and savings in a matter of months.  The whole world seemed upside down.

You by now are probably wondering why the hell I am even writing this story.  Well, because I am becoming very leery again.  The markets, including all sectors, has done wonders for many companies and many investors. But just look at the GDP since January of 2015. Below is each quarter since. 

Hmmm....watcha thinking now?  They do say, if there are two consecutive quarters that are negative, its a recession.  So do you think we are headed this way or not?

This is a good site to read about indicators of a recession if interested; 11 Causes of Economic Recession

Once again, everyone is being practically brainwashed over the news that everything is so peachy when really it's not. Yes, the housing is flourishing but needs to slow down, the interest rates are wonderful but need to be raised. Feds won't push for an interest rake hike because they are too chicken. Waiting for after the election I'm sure.

The Dow, S&P, and the Nasdaq just won't stop climbing!  How is this even possible?  This market is so overbought, it's ridiculous. I just cannot figure out this economy for the life of me. This is the strangest year ever. Why is that?  

Must be Trump?  Lol!

Honestly, I am already preparing a bit ahead of time.  I watch and make moves as necessary and so should you.  I really hope I am wrong but I really don't think I am.  Maybe it's everyone waiting it out to see who's in office before any moves are made.  Well, I am not waiting for that.  

Good luck!