The AI Bubble Has Burst. Is Recession Next?
August 14, 2024
Hosted by Ferenc Toth
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Episode Description
The AI tech bubble has burst due to a weak unemployment report, poor earnings, and a surprise Japanese interest rate increase. A popular institutional trade was to borrow money cheaply in Japan, then use margin to invest in assets that vary in value like tech stocks. When the cost of borrowing increased, so did the capital required to borrow. This created a huge amount of margin calls. The massive selling created panic in the markets. If the economy was strong the market would likely move on from the recent crisis. The excess savings from COVID relief is gone. Consumer household debt has increased 25% in the past 3 years and hit new records. Unemployment has increased in the past four months. These are all signs that predict recession is ahead. There were calls for emergency rate cuts. The Federal Reserve response was "There’s nothing in the Fed’s mandate that’s about making sure the stock market is comfortable." Don't expect a Federal Reserve bailout. Inflation has been above 3% for 39 consecutive months. The Fed is more concerned about inflation than recession. In fact, a recession helps the Fed fight inflation. It is clear volatility has increased and not likely to disappear any time soon. It would be prudent to protect your assets. Diversify. Reduce your risk. Reduce your tax liability. Increase returns safely. Increase liquidity to take advantage of future opportunities. You can invest in high cash value Your Personal Bank TM policies that are insured, with guarantees, income tax-free, highly liquid, and likely to increase returns for the next 5-10 years! Contact Ferenc at yourpersonalbank.com or 866-268-4422 for more info.
Your Personal Bank
Wednesday at 11 AM Pacific on VoiceAmerica Business Channel
Your Personal Bank TM is a financial concept that strategically integrates financial tools from the banking and insurance industries to continue growth on funds even when you access them for other purposes. Ferenc will share how Your Personal Bank can enhance returns on investments, including real estate, reduce the cost of borrowing, and safely create positive arbitrage. Ferenc will also share how the rapidly increasing interest rates will likely increase future returns and positive arbitrage.
Ferenc Toth
Ferenc is founder of Your Personal Bank TM. He is passionate about helping people gain control of their money, create tax-favored income, and having access to more funds over their lifetime! He has a knack of explaining complicated financial concepts in a simple and easily understood manner. Ferenc gets people to think and empowers them to better understand the financial tools they are considering. He actively educates for financial literacy. Ferenc’s company continues growing rapidly with over 5000 clients and a dozen advisers. Ferenc has personally advised over 1000 clients and mentored many advisors over his 20+ year career. Ferenc has been and is annually recognized by several financial and insurance institutions as a top advisor. He has been honored many years as a top 10 adviser nationally. Ferenc is a General Agent. Unlike most agents/advisors General Agents work directly with financial institutions and typically have an extensive level of experience and knowledge. Ferenc proudly served in the Fife and Drum Corps, 3rd US Infantry, “The Old Guard”, US Army. The Old Guard is the Army's official ceremonial unit and escort to the president. The Fife and Drum Corps is one of the premier musical units in the US Army. Ferenc performed in many ceremonial functions at the White House and various events around the country including the Indianapolis 500 and Kentucky Derby. Ferenc is a semi-professional bass trombonist. He performs in various groups including church orchestra