It’s always perplexing to me that people only see what they want to see. It’s human nature to gravitate to that which makes you feel the most comfortable and secure. Like a bunch of green arrows pointing up on your favorite brokerage app. But disciplined investors look past that, take it in and dig a foxhole for good measure.
The backdrop to the equities markets continuing to make new record highs is a very real Delta Variant of the Covid-19 virus now in at least 92 countries. The strain is doubling every two weeks. Sweeping cyber and ransomware attacks causing crippling logistics nightmares for company supply chains. Runaway inflation and record unemployment strain consumers. And scariest of them all, certainly for equities investors, the Fed is openly broadcasting that they are starting to tap the brakes.
When stocks and higher-risk assets exhibit weak price performance when headlines are unfavorable, US Treasuries — due to their status as one of the lowest-risk investments in the world — become a safe haven for investors now more interested in capital preservation than growth when the investment backdrop becomes unstable. This phenomenon is known as the "flight to quality" or "flight to safety." But the flight is over-booked; You may not get a seat when the time comes. The 10-Year Treasury benchmark is sitting at 1.349%. Current inflation signals are vastly higher than that.
I highly recommend that you charter a private flight to safety. The Senior Life Settlement asset class offers significant benefits for preserving your principal against the erosion of your buying power while earning attractive long-term rates of return regardless of whether the wheels come off the global economy or not. The time is now to start thinking about avoiding a turbulent future.
