But, gas prices are coming down.
According to a recent report, 401K’s are down on average by 20% in value. Million dollar accounts have declined by a third.
Like a number of investors, as soon as inflation started to climb, I changed a portion of my investments towards cash and longer-term, low yield investments. The hit have been less, but is still a significant loss in terms of overall value. My own parents have, so far, jokingly said they may need to move in with me if things keep going like this.
With the Feds recently raising interest rates to “cool” inflation, a number of other things I’m seeing suggest this is going to get a lot worse. While there are still some good paying jobs around, hiring slowdowns and layoffs are becoming more common place. Netflix and Twillio announced layoffs. Twitter, Google, Microsoft, Meta and even Apple have announced significant hiring slowdowns and even some layoffs. Even the media has not been unaffected with CNN, Axios, and other outlets cutting positions.
Some have estimated that this down cycle will last at least a couple of years. There are significant challenges to our economy that will need to be addressed if we’re to recover any quicker. Of course, it didn’t have to be this way.
Democrat policies pushed an already precarious economy over the brink by spending trillions more. When gas prices started to cause worry in the polls, Biden siphoned off the Strategic Petroleum Reserve to stop the plunge in his numbers. Now he wants to refill it with pricey oil furthering the need for more federal money to prop up his terrible decisions.
But don’t worry! Gas prices have dropped almost a dollar a gallon. Biden has even said that in over 40 states, the price has dropped below $3 (that is false), and over ten million jobs have been created since he was elected (also false). And yet, Biden is enjoying 40 point approval ratings because Dems and the media are screeching about anything but approaching economic calamity. There is a reason they want early voting and won’t talk about the economy.
Too bad we have to endure another two years of Biden. Hopefully, people will wake up sooner rather than later and realize that mean tweets weren’t so bad after all. I would place my faith in the GOP in being able to knock this one out of the park, but so far, I have yet to read about any significant legislative agenda that will address the economy and out of control government spending other than, “Hey we’re going to cut the funding for those new 87,000 IRS agents.”
The GOP needs to focus on a strong, family oriented legislative package that will improve supply chains, give incentives to strong business growth, address the left’s ideological attacks on our children and education, and end the corruption of the FBI and Department of Justice. These are winning propositions that will depress Democrats and cause independents to vote for the GOP in droves. If they want to ensure the base will be motivated, they need to get their act together and soon.
In the interim, I’ll be over here hoarding cash in this mattress I bought. Not that it won’t be of much value for long the way things are going.