Stay safe: A financial crisis could still be around the corner

Investors have been cheered by rate cuts, but Bill Bonner says don't get too excited…

Bear market and bull market in the stock market
(Image credit: Getty Images)

As we start 2024, we turn to a pressing investment concern. Our readers must be asking the same question we are: what if we’re wrong? 

We have argued that the “primary trend” in markets turned around in two moves: first, bonds topped out in July 2020; then, stocks reached their apogee at the end of the following year. We urged investors to move to MSM – “maximum safety mode” – while we awaited a crisis. Deflation was the immediate threat, not inflation. Higher interest rates would cause financing problems, we believed. Another shoe was bound to drop – a penny-loafer of a big company suddenly unable to pay its bills, a steel-toed government debt auction going “no bid”, a fast-moving crash in the stock market.

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Bill Bonner is an American author of books and articles on economic and financial subjects. He is the founder of Agora Financial, as well as a co-founder of Bonner & Partners publishing.