Three Stock Market Risks and Your Health in the Balance
Column #24
What’s causing the wild stock market gyrations? In August 2015 it plunged and recovered. In January it plunged again to the August lows. Is this current rally a great buy or is the big picture more ominous? Why is our health in the balance?
The media’s “don’t panic” advice is appropriate since investing requires a calm, thoughtful approach. But markets do change directions and everyone holding cash, bank deposits, bonds, or marketable assets is an investor who will be impacted by monetary cycles.
The three market risks are stagnating growth, restrictive Federal Reserve (Fed) policies, and debt. The subprime mortgage defaults in 2007 started the last depression as aptly explained in the book and movie: The Big Short. To recover from the 2008/2009 market crash and recession, the Fed initiated quantitative easing programs and zero interest rates to inflate stock prices and bank liquidity. It also enabled an explosion in student loans, subprime car and oil loans, loans to corporations to purchase stock, margin debt to buy stocks, and trillions more of government debt. Unfortunately debt-funded consumption is not anything like sustainable organic growth.
In 2015 the Fed ended its quantative easing and raised interest rates one quarter percent. Oil and other commodity prices plunged. With higher interest rates and falling oil prices everyone is wondering, “Will the oil patch depression ignite another subprime credit collapse?” It’s a valid concern.
A 22-year chart of the S&P 500 Index.
The S&P index is in an uptrend in spite of recent declines. But look below the index. When black momentum lines drop below red momentum lines, the S&P Index usually follows.
Independence and Health
Immune system strength is important in combating the affects of stress. Its strength can be determined with a blood lipid test (https://omega3test.com/ offer code slanker). The test measures the ratio of essential Omega-6 to Omega-3 fatty acids. The ratio is created only through diet because essential fatty acids are not synthesized by the body. The ratio is significant because research comparing changes in the ratio with overall health indicates that ratios exceeding 4:1 correlate with increases in autoimmune diseases and other chronic conditions. Ratios below 2.5:1 actually reduce rectal cell proliferation in patients with colorectal cancer. The optimum ratio is considered to be 1:1 which is the goal of The Real Diet of Man. The average ratio for Americans is estimated to be 15:1.
Because of compromised immune systems, most Americans are dependent on prescription and over-the-counter drugs, regular doctor visits, and periodic operations. They don’t understand that their chronic conditions are mostly a result of what they eat.
The cost associated with treating chronic diseases with drugs and operations exceeds the cost of preemptive action that includes eating low glycemic, properly balanced, nutrient dense foods such as grass-fed and omega-3 meats, wild-caught seafood, green leafy vegetables, and a limited amount of tart fruit. Eliminating healthcare costs is essential for an independent lifestyle. Being resilient in health and finances is critical for survival in this modern age.
To your health.
Ted Slanker
Ted Slanker has been reporting on the fundamentals of nutritional research in publications, television and radio appearances, and at conferences since 1999. He condenses complex studies into the basics required for health and well-being. His eBook, The Real Diet of Man, is available online.
For additional reading:
Peer Reviewed Omega-3 Research
An introduction to The Big Short.