Don’t Underestimate This Bear Market: Lower Prices Likely Ahead | Michael Lebowitz

For decades now, nations have been taking on debt far faster than their GDP has grown.

They’ve kept the borrowing binge alive by having their central banks conspire to push interest rates ever lower.

But that process is unsustainable. It’s a limited-time swindle that ends when the debt service costs become too onerous.

And the massive amounts of new debt issued in the wake of the pandemic have rocketed us down much of the remaining limited amount of road

the system had left until it reaches its day of reckoning, portfolio manager Michael Lebowitz cautions.

Michael is part of Lance Robert’s team at Real Investment Advice, one of the financial advisory firms that Wealthion officially endorses. While Lance was away last week, Michael kindly stood in for him at our live Q&A event last week — we received so many positive comments from you viewers about the quality of his answers that I wanted to invite him on the program and give him the opportunity to share his full macro outlook.

The Consumer Is Starting To Fail, Increasing Recession Risk

Consumer spending powers the economy, making up 68% of GDP here in the US.

And, like it or not, much of that consumer spending is funded by debt — credit cards, mortgages, auto loans, etc.

But rising interest rates are now starting to make the cost of that debt more expensive.

That trend, combined with increases in the cost of living caused by today’s spiking inflation, is pinching folks’ ability to borrow and spend.

We’re seeing more and more signs

that the consumer is starting to tap out.

And should that happen, the risk of recession grows substantially.

To understand why & what to do about it, watch this new 12-minute explainer video.