When Is The Next “Bust” Going To Happen?
A funny thing happened during one of the sessions at the 2015 Your Financial Destiny event. Guest speaker, Robert Murphy, PhD, noted that since the 1980s the economy went bust approximately 12-24 months after a new Federal Reserve Chairman was appointed.
That comment has been milling around in my head for the last several months, and so I finally, put together a graphic to see exactly what has happened every time a new Fed Chairman takes the reigns of our monetary system. Click on the graphic to see and read the full size file. You’ll see for yourself exactly what’s happened every time a new Fed Chair comes to power.
Even though Dr. Murphy noted this only from the 1980s in his comment – you’ll see in my chart that historically he’s actually accurate all the way back to the beginning of the Federal Reserve in the early 1910s.
So, when is the next “bust” going to happen? If history repeats itself, as it usually does, be on the lookout for an economic downturn in the next 6-12 months.
It’s never a coincidence that the market “corrects” and there is a bust. Remember folks, this is an appointed position and there’s always a reason for a new appointment. Perhaps, you may remember that Janet Yellen’s predecessor, Mr. Bernanke was appointed to help President Bush in his final term “save the day.”
Like I always say, if you know what’s happening – you’ll know what to do. Start preparing now.
