1.

When a central bank is purchasing the vast majority of sovereign bond issuances well below market rates, it is incentivizing reckless indebtedness and forcing savers to go to riskier assets. Both are negative outcomes of QE that completely outweigh the questionable benefits.

2.

Where were you September of 2008? Do you remember how lightening fast the world turned? We all forget how scary the financial crisis was for Americans. That said, things will turn just as fast during the next crisis. However, markets will fall more severely due to our unprecedented market prices. Protect your clients; the negative factors are piling up currently.

3.

The government is going to keep providing stimulus until we die of an overdose. They can never take it away or we will go into withdrawal; the more we get the more we need. It’s a vicious circle until we overdose in the form of a dollar crisis, sovereign debt crisis, and/or runaway inflation.

4.

With interest rates near zero, The Fed has been begging seniors and savers for years to take on more risk with their nest egg. The Fed had their backs by stepping in every time a crisis arose. Bear markets were short-lived and accounts bounced back from the red quickly. This false sense of security could be incredibly harmful. We have all been programmed to buy the dip for 40 years. Sorry for the bad news but next time will be different. The Fed has used its “magic-money wand” for the last time…

5.

An option for the above cataclysm in which I speak? Non-volatile guarantee accounts in sound institutions. How about a short-term 3 year option at around 1.80% with an A- NY insurer? Or a fixed-index with 3 index options from which to choose, and guarantees a 1% yield each year? Take some chips off the table especially for seniors.