In consideration for my talk at Yahoo! headquarters in Sunnyvale, CA a while back, an article I wrote will go on the front page on Tuesday of next week, the peak Web traffic day.
Like the Financial World article, my goal here is to gently introduce the main concepts of this site to a wider audience. Again, I am not trying to run all 100 yards on the first play.
Here’s a sneak peek at it for enrolled members:
Why Stocks and Bonds are Now Hazardous to Your Wealth
Within the next twenty years, the most profound changes in economic history will sweep the globe. The economic chaos and turbulence that we are now experiencing are merely the opening salvos in what will prove to be a long, disruptive period of adjustment.
At least that’s my theory, and careful investors owe it to themselves to hear me out. If I’m right, long-term investing in stocks and bonds will deliver lackluster returns at best and be destroyers of wealth at worst.
To explain why, I need to tell you about how “Three Es” – the economy, energy, and the environment – are interconnected and why we need to consider all three at once. (This topic is covered in depth in my widely viewed – and free – Crash Course video series.)
The first “E” refers to the economy. Even if we were to limit our analysis to this realm only, I could make a compelling case that stocks and bonds face the most daunting structural headwinds seen in generations. As I argued in The Great Asset Bubble, as baby boomers transition from being net savers to net spenders, this will have a dramatic downward effect on the value of the stocks, bonds, and real estate that they will need to sell.