Political Promises and Your Investment Portfolio
We all know that politicians make promises in order to get elected. The Greek politicians were told that if they didn’t vote for these recent austerity measures, serious problems would ensue. Austerity measures are now causing a lot of pain to Greek citizens, and the politicians will probably be somewhat insulated from this, despite the chaos and riots currently underway there.
Here in the United States, politicians are no different. President Obama’s new budget is calling for a $1.3 trillion deficit for Fiscal Year 2013, and it’s interesting to note that we’ve suddenly gotten used to “trillions” of dollars in deficit. What’s disturbing is that Europe is starting to really feel some pain because they can’t borrow any more money. With budgets like President Obama’s and the seeming lack of interest in dealing with these issues, the U.S. may see a similar problem and similar pain in the years to come.
We suggest that our clients watch what happens in Europe closely, because the problems there are very serious, and might soon be the future for the U.S. if we’re not careful. Our number one priority for our clients is capital preservation, and we advise you to be cautious when looking at the markets and investing your hard-earned capital.
(If you read this blog and enjoyed it, listen to Doug’s podcast this week for even more details on these topics, and please share this information with others who might benefit from our perspective.)
