For the last four years, ordinary Americans have struggled to rebuild their wealth in the wake of the Great Financial Crisis.
Last week, the Federal Reserve Bank of St. Louis reported that the average U.S. household has recovered only 45% of its wealth lost during the recession.
Of course, the Federal Reserve won't acknowledge that its Chairman, Ben Bernanke, has been a principle driver in the underperformance of the middle class' return to financial normalcy. Bernanke has removed incentives for anyone to keep their dollars in a savings account by knocking interest rates to near-record lows.
Meanwhile, nearly 50% of Americans do not own any stocks or bonds. Given recent memories of their wealth evaporating, it's been difficult to instill much confidence for those who lost so much.
Low rates and lost confidence in the markets have left more Americans vulnerable to inflation, accelerating costs of staples, and uncertainty about their financial future.
But there is good news.
As the U.S. policy continues to exhibit how government intervention in the financial markets favors the rich and leaves the middle class out in the cold, there still are ways that the average investor can make money.
And it all starts with one simple piece of economic advice.
You need to take charge of what's available in the markets and put your money to work with investments that offer a healthier dose of confidence than Ben Bernanke's economic alchemy ever could.
Let me explain...
Embracing the Free (Energy) Market
Right now, keeping money in a savings account is going to cost you due to inflation. And putting much faith in the U.S. government's rates will not do much to instill much confidence.
But by investing in companies engaged in the procurement and distribution of valuable commodities will provide a steady return on your investment in any economic environment.
Embracing these companies that have the capacity to expand globally and pay strong dividends can help beat back Bernanke's war on savings accounts.
That's because publicly owned American companies, despite new regulations and government intrusion, find a way to perform around the rules and policies meant to hold them back. They perform through innovation and competition. They thrive off their ability to provide a need in a market.
Simply put, investing in companies that facilitate global trade are the best investments to defend against government's reckless fiscal policies. Yes, the markets do go up and down, but investing for the long-term is an important strategy to help rebuild wealth in these tough times.
Of course, this sounds so simple.
But for a person like me who is fascinated by global trade, innovation, and problem solving, I tend to "geek out" by what's happening right now in this world.
And of course, the money that can be made...