The Biggest Wealth Transfer in History Is Happening Right Now
You can choose to be on the right side of it.
A lot of money is changing hands right now.
There are those who understand what is happening and those who are snoozing their way to having a large portion of the value they’ve created eaten for breakfast by a stranger in a red devil suit.
The biggest wealth transfer in history is explained as a result of US$16 trillion going from one generation to the next. This is logical.
The wealth transfer I’m talking about is of a different variety.
It’s the result of the way money, and the assets it can buy, being completely turned upside down. Record unemployment and record highs in the stock market are the first bright red flag. As an investor and somebody who has spent 9 years working in finance, I’ve learned to be fearful (in a good way).
Fear translates to selling while everybody else is buying. Fear translates to not believing the hype. Hype will destroy your financial future.
I’ve talked about the trillions of dollars the US is printing right now to place a band-aid over an economy that was showing huge cracks before the global health crisis in September last year. In short, the REPO Market blew up. This REPO market in really simple terms is where hedge funds, banks, and brokers engage in short-term lending between each other.
The significance of this event is straightforward: The financial system in the US ran out of cash.
What followed was a health crisis that fast-tracked this already lingering problem. The solution: print trillions of dollars out of thin air and hand some of that free funny money out as stimulus checks. Whenever I think of free money from the government I always trip over the phrase “there’s no such thing as a free lunch.”
Where did these trillions of dollars go? To the people who understand them.
The result of the cracks in the REPO market and the printing of trillions of dollars helped contribute to the largest wealth transfer in history that is happening right under your nose. Here’s the unconventional approach to being on the right side of that wealth transfer.