Beware The Placid Island Of Investment Ignorance

Some investors are living on a placid island of ignorance. And nowhere is this more so true today than in the highest yielding areas of the market. Unfortunately, it is in these very same asset classes where income deprived retirees and fixed income earners have been effectively forced to enter as a result of the seemingly endless zero interest rate policies by global central banks including the U.S. Federal Reserve. To this point, they have been harmed little. But I have increasingly grave concerns that the underlying instabilities building under the surface for many of these asset classes will suddenly open up terrifying vistas of reality that will impose major losses on these unsuspecting investors. Unlike the major financial institutions that, despite their ongoing resuscitation from the last crisis, are once again sowing the seeds of another financial trauma through their alarmingly similar misguided actions, who will save the poor masses of individual investors once their frightful position therein is finally revealed? Likely no one. And upon suffering a third major capital market correction since the turn of the millennium, it is possible that many will flee from the deadly light of financial markets for good once this revelation has finally come to pass. As a result, now is not the time for complacency for even the most resilient of investors despite the recent calm across investment markets.

Please click on the link to read more of my article on Seeking Alpha.

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