For a couple of years now, Phil Cannella has urged American retirees to wake up to the fact that the American economy has been artificially inflated through a multi-trillion dollar Quantitative Easing program the likes of which this country has never seen in its entire history.
Quantitative Easing injected trillions of dollars into the economy leading the stock market to new highs month after month for the last couple of years, yet the underlying economy lacked the real growth that would and should accompany such stock market returns. In short, we have had an artificial high in the S&P 500, Dow, and NASDAQ, which have bred investor confidence.
Phil Cannella stands alone as a man who has warned retirees that the economy was standing on flimsy footing and sooner or later would collapse on itself. As he predicted, in the last couple of months we have seen the beginnings of what economists are terming a “correction.” The economy unable to sustain itself, is now so fragile that almost any political event in the world causes waves in the American economy.
Worries in Greece a few months ago caused the stock market to fall. As that abated the stock market came back. Then China’s woes hit the economic world and the American economy slumped from its 18,000+ highs to a little over 16,000. This is correction territory.
Just as Phil Cannella predicted, these false market highs were unable to sustain themselves. We must ask ourselves who is most hit by the current volatility in the market. Is it the person in the accumulation phase of their life that is still working, or is the person that is relying on their nest egg to enjoy their retirement?
Phil Cannella advises all retirees to protect what they have worked so hard for and enjoy their retirement.