In 1928, President Calvin Coolidge decided against running for a second term. Some say he must have known what was about to come. Either way, in 1928, Herbert Hoover was nominated to lead the
Republican party into the next election.
To say Hoover was bullish on the future would be an understatement.
It was the roaring 20s. And Hoover ran on the promise, “a chicken for every pot”. To which he also added “…a car in every backyard, to boot”.
He even said, “We in America today are nearer to the final triumph over poverty than ever before in the history of any land…”
Sure enough, after Hoover was elected, the stock market went on a tear. Anyone who could scrape together a few nickels was buying stocks. Cooks and janitors were investing their live savings alongside millionaire tycoons. And, the market soared, despite reality. GDP was down, unemployment was up, and the country was in a mild recession.
Of course, it was a bubble.
One that burst on Black Tuesday, October 28th, 1929. Millions of investors were wiped out… And America was plunged into the worst economic downturn in history – the Great Depression.
At its peak, nearly 1 in 8 Americans were out of work. And nearly half the country’s banks had failed.
It took 10 long years for the country to recover. And many individual investors never did.
Have we learned anything?
Today, GDP is down, real unemployment is up, and yet, the markets remain at (or near) all-time highs.
Yet most financial advisors are still promising “a chicken for every pot”, just like Hoover before the big crash.
Not me. I say there’s a new crash on the horizon. One that’s going to be FAR more devastating than what happened in 1929.
That’s because today’s bubble has been inflated much, much bigger – thanks to trillions in stimulus and especially corporate buybacks. When it pops, millions of investors will be wiped out.
Can those investors afford to wait 10 years or more for the market to rebound?
Most can’t. And so they’ll be devastated. Many will spend their ‘golden years’ deciding between food and medicine.
Join me on one of my free webinars where I give some of my insights for you guys so you can set yourself up and secure your future.