Signs of financial stress.
The effects of higher interest rates have a 6 to 12 month lag period before showing up in the general economy.
It appears we’re seeing those related issues now.
A Canadian real estate lender has recently halted redemptions on its fund.
This means investors can’t get their money out which is a pretty big deal. Romspen Investment Corp said the reason behind this decision is because “borrowers stopped making payments.”
Imagine you lose your job and want to sell some investments to pay the bills. But you can’t because of a liquidity freeze.
There is trouble in the United States as well.
When small businesses can’t afford to continue operations they close down. This will lead to big layoffs.
The problems today in the economy is just the beginning. I think next year is when we’ll see high unemployment.
The stock market rally over the last couple of weeks have been great. But I believe we’ll get another correction, at least 10% down from here, before we see new highs again.
I plan to invest $20,000 of new money from now until the spring of 2023. That’s about $5,000 per month. My savings rate is non-existent at this point so I will be borrowing the money from my HELOC or margin account. 🙂 I do believe the stock market will be higher by the end of next year, but I’m just not sure how it will get there so I’m hedging my bets and pacing myself.
Random Useless Fact:
The world population is now at 8 billion for the first time.