Despite panic-selling in equities last month, investors should remain in the markets, which would recover over time, said Max Keiser, host of the Keiser report.
“I learned in 1987 during the crash that the best thing to do is to just stay the course, and that over time, the stock market does reasonably well. I think the mom and pops out there who are down should be adding to positions,” Keiser told Kitco News.
Keiser noted that the balance sheet of the Federal Reserve still has more room to grow, which is important for investors because economic growth is based not on fundamentals but rather on “money printing.”
“The central bank balance sheet could go to 200% to 300% of GDP as you see in Japan, [where] the central bank has a balance sheet greater than the GDP of Japan. The U.S. could have a balance sheet greater than the GDP of America. So that balance sheet on the Fed, people say ‘oh my God, it’s at $5 trillion, that’s unsustainable.’ The fact is, it could go to $20 trillion, or $25 trillion,” he said.
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