The math is simple-the difference of $4K reduction in salary is a loss of disposable income of approximately $560 billion less in earnings per year since 2007. That does not take into consideration that we have more than 5M less workers. This evaporation of income in a consumer fueled economy is devastating, hence the anemic recovery of the last few years.
On a brighter note, investors that do not depend simply on increasing indexed returns will be rewarded-no fooling.
DISCLOSURE: Opinions and estimates offered constitute the judgment of MCS and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.
This article was written by Metropolitan Capital Strategies CEO Sharon Snow and Chief Investment Officer David Schombert.