Danielle’s Biweekly Market Update

Danielle was a guest with Jim Goddard on Talk Digital Network talking about recent developments in the world economy and markets.

Video Length: 00:27:59

Below is the chart showing the present 46% allocation of household net worth to equities, versus just 15% to bonds and 16% to cash. This level of risk-concentration to equities was seen at the 2000 tech bubble top and, to a lesser extent, the 2008 bubble top. However, allocations to the least risky bonds and cash are lower today than those previous risk cycle peaks. As a result, household net worth is heavily exposed to the downside of a bear market and recession. It is especially precarious because unemployment will rise as equity and housing prices fall—another train wreck in the making.

(Click on image to enlarge)