"If you look at it historically, there has never been a period when the Fed has started to take back stimulus that has left the markets untouched. And this time it is a bigger exercise. We have moved markets from 2009 to 2013 on stimulus and now we are trying to take a step into a world which is more driven by natural growth. That transition will not be easy." - Hans Peterson, global head of investment strategy at Swedish bank SEB.
Everything between 2009 and 2013 was "stimulus".
You understand what that means right? It means when you look at your gains in the stock market... they aren't gains at all. Its pure inflation. Every penny. They outright admit this to you... and you probably still doubt it. You probably still can't conceive it. Even as you notice that 6 bucks used to buy you a 24 pack of cokes... and now the box is smaller... and you only get 20 cokes... for the same 6 bucks. Or the Doritos that were 3 dollars last year are 4 now... on and on and on.
Forget inflation and deflation for a moment. And just focus on this one thing... and get it through your head.
There is no recovery. There is no recovery.
THERE IS NO DAMNED RECOVERY.
It is not getting better. It is not going to get better next year... or the year after.
You have at most 3 years to prepare. I am not going to sit here and tell you everything you need to do. Figure out what you need to do and do it. If you don't... don't blame me. You were warned.