The rollercoaster rides
of the markets are making investors and savers dizzy and sick to their stomachs. The rocket ride to the top and the free fall to the bottom are causing main street to get off the Wall Street ride. If trillions of dollars were already parked on the sidelines, then the sidelines need to be expanded to accommodate the trillions in liquid cash searching for a place to rest.
The nosebleed highs and the plunging lows of Wall Street
are just too much for the regular Joe. The financial district looks more like a Roman Vomitorium than the marbled halls of economic power. People are sick and tired of being sick and tired.
Add to this the chronic insomnia of worry that weighs upon the mind of the everyday guy, as retirement is pushed back another decade because the kid’s college tuition and parents’ nursing home bills are due. At this point a nightmare would be better than lying awake in the cold sweats of sleeplessness.
And whatever money survived this last ride is going to the sidelines, where taxable
CDs and money markets pay nearly nothing and many financial advisors still charge
a fee for parking.
The physiological damage is done. The emotional stress is overwhelming. The only game left in town is tax advantaged and guaranteed insured products
Wall Street doesn’t like the non liquidity aspects, tough. The pundits on cable TV don’t like the insurance companies, too bad. Advisors
don’t like buy and hold, don’t care. Most tax advantaged and guaranteed insured products preserve principle and beat the banks day in and day out.
And their costs? The good ones are no more than most fund expenses and advisor fees combined.
But whatever the price tag, it’s less than the market losses and the taxable trading gains of most funds. Savers and investors are ready for principle preservation and have a mindset for mid- to long-term planning timelines using tax advantaged guaranteed and insured products. Game on!
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