What is the “big fleece?” No, it’s not an oversized blanket you wrap yourself in when it’s cold.
The big fleece is a term many in the financial world use when they’re talking about the pundits and experts in the equity markets who continuously promote “buy and hold” investments for the long-term in your 401k, 403b, IRA and other retirement savings accounts. They fancy the notion that governments can continue to spend their way to prosperity, so deficits don’t matter, as long as they create growth.
But is that perception necessarily true? Governments have certainly been spending a lot of money, but growth has been elusive. Stock markets continue to rise on the hope that growth will show up at some point in time, as government spending continues. Meanwhile, investors continue to invest in the notion of “spending our way to growth” with every dollar “put to work” in the stock market. The question is: who are their dollars actually working for?
The pundits and experts are definitely getting paid, even when your retirement funds get taken out to the woodshed and beat down. But, without sufficient growth to offset record spending and deficits by governments, your money will end up in a big hole if you buy into the hope that growth will get us out of a hole that gets deeper every day. None the wise, this is what big fleece is all about.
Don’t get played. Technology and market education enables us to take control of our own financial destiny by learning how to trade markets like the Forex and manage risk to avoid losing your vision to the big fleece. Unlike investing in equities with your retirement funds, when you trade the Forex, you could make money regardless of market direction, and most importantly you avoid being fleeced by those who will never tell you to sell. Play to win; don’t get played.