Jeff Snider: Recession Will Worsen The Bear Market & The Fed Is Powerless To Stop It

Here at the mid-point of 2022, investors are assessing the terrible first half of the year and wondering what the second half will bring.

And as we peer ahead right now, the stormclouds outnumber the sunbeams.

Measured inflation remains hot. And recession and stagflation are on everyone’s lips — it seems a foregone conclusion to many at this point.

The Fed remains committed to raising the cost of capital. And Q2 earnings calls are about

to begin: will companies announce downwards revisions to their forecasts, thereby sending stocks even lower?

To address these important topics, we’re fortunate to be joined by monetary expert and economic researcher Jeffrey Snider, now of Eurodollar University. He’s at the top of the list of experts the Wealthion audience has been asking me to bring on the program and I’m thrilled he’s finally been able to join us.

Robert Kiyosaki: Worst Crash Of Our Lifetime Ahead, Here’s What The Wealthy Are Doing Says Rich Dad

Author of the best-selling book Rich Dad Poor Dad has some doubts as to whether the current Federal Reserve chair can reign in inflation.

As we wrote last week, the Federal Reserve and, more broadly, the Biden Administration are in quite the monetary bind. With inflation running above 8% and federal debt to GDP at 125% (surpassing the previous record in the 1940s), the only options seem to be: recession, default, or more inflation.

It’s not an enviable position to be in. As for which option they’ll choose, world renowned author and radio host Robert Kiyosaki has an idea.

Extrapolating from past precedent, Kiyosaki believes it won’t be long until money printing, aka Quantitative Easing, will continue once again. There is simply too much debt, both public and private, and the stock market is standing on stilts. Otherwise, the Fed would be facing “the biggest crash in world history”, an outcome they’re unlikely to stomach.

This makes the investment thesis pretty simple in Robert’s mind: own real assets. For Robert, “physical assets” take on many forms, from traditional investments like real estate and gold to more exotic ones like oil wells and Wagyu Beef breeding bulls.

Buying assets that the Fed cannot print is the core idea behind the thesis.

However, if Kiyosaki’s long-term thesis is correct, this is bad news for everyday Americans, who are already struggling with soaring gas and food prices. This is compounded with the fact that 89% of US stocks are owned by 10% of the population, meaning 90% may miss out on the asset price appreciation that often accompanies inflation.

Listen to Robert’s full interview to understand his thesis better and see how you might position your investments.

Could Home Prices Crash As Much As In 2008?

Housing analyst Nick Gerli returns to the program to warn how swiftly the prospects for home prices are eroding.

Confidence in the housing market was supreme just a month or two ago. But suddenly that confidence is vaporizing as an increasing number of experts now caution of a “full blown” correction ahead.

Rising mortgage rates are a huge part of the equation, but we’re already starting to see sales slowing and even price cuts in a number of markets — especially the ones that have been

the hottest in past recent years.

Does Nick still think prices could come down by as much as 30% on average?

Could we indeed see price declines on par with the 2008 crisis?

To see what the latest data is telling on these points, watch our just-released interview with Nick Gerli.