What Will Happen When the Market Has a Down Year??


We point this out because if the SP500 return was 22% last year and the NASDAQ was 27% yet the unfunded liabilities grew some 38% what will happen when the market has a down year? These are truly scary figures, as we have said time and time again, update after update, that the mathematics will eventually destroy all of these illusions. Using debt to supplant savings for organic growth is governed by the exponential laws of diminishing returns, or in simpler terms as time moves to the right, it will take more and more debt to produce an equalized amount of growth. The longer that persists, the larger the problem gets and it never truly goes away, but it dies in spectacular fashion, unfortunately!

 

 

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