You need to make sure you have a safe harbor for your money. Yes, I know it’s been a good year for the market, but what is supporting it? Take a look at the Baltic Dry Index. It shows the cost of transporting bulk goods across the world’s oceans. It’s up 27% YTD as shown in the first chart, but down 93% compared to its May 2008 peak. How much of this year’s gain is thanks to the money printing by the Federal Reserve? $85 billion a month goes a long way to keep markets afloat. Hedge funds loved trading the BDI until the crash in 2008. It’s hard to believe that there’s much substance supporting this current run.
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E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at firstname.lastname@example.org.