As I approach my 42nd anniversary of working in and around the financial arena, I find myself in my most bearish stance overall for my entire career.
Having been blessed to avoid/sidestep the 3 biggest stock market slides during that timeframe, I’m convinced the next one will be the worse and longest lasting of them all.
The ten biggest concerns I have include, but not limited to:
1 – Passive Investing – Star manager Terry Smith warns index funds are ‘laying foundations of a major investment disaster.
2 – Private Credit/equity implosion – The US private equity market is frozen. Private equity firms sold just around 325 companies in 2025, making its weakest year since 2009. This is despite the number of companies held in private equity portfolios standing at a record around 13,000. By comparison, private equity firms sold ~1,200 companies in 2021, nearly 4 times more.
Private equity firms are unwilling to sell companies at lower valuations after buying them at elevated prices, keeping assets off the market, even though plenty of capital is available. As a result, the average holding period, the time between purchase and sale, is now up to nearly 7 years, well above pre-pandemic levels. Private equity firms are stuck!
The main problems with private credit involve lack of transparency, making valuation difficult; inflated leverage and looser lending standards leading to high risk; and illiquidity, trapping investors, with concerns it could spark the next financial crisis, similar to 2008, due to opaque, rapidly growing, and potentially over-leveraged markets. Key issues include potential underwriting failures, valuation risks, and systemic stress if defaults surge in this less-regulated sector.
3 – Political division – The political divide in America is characterized by deep ideological separation between Democrats and Republicans, a growing gap in policy views, increasing animosity, and a shift towards more extreme positions within parties. Key drivers include partisan media, primary systems, geographic sorting (urban/rural), and differing views on government’s role, leading to gridlock and partisan warfare.
4 – Geopolitical Crisis – Never have so many different events worldwide come together in a near perfect storm, yet the financial services industry is asleep at the wheel.
5 – Debt Crisis – National debt is already killing the American Dream, says top economist—and it might push the U.S. into an outright depression.
6 – Retirement Crisis – From Bad To Worse
7 – Battle of the ages/classes – Economic cliff is coming for your retirement.
A Battle between classes is being greatly compounded by a growing rift between age groups. “Boomers” are facing backlash never imagined by previous seniors. The idea that “Boomers are to blame” for current societal issues, seen in the “Okay Boomer” trend, points to younger generations feeling economic hardship (housing, debt) and lack of opportunity compared to the post-war boom their parents experienced. While some blame Baby Boomers for self-serving policies (debt, environmental issues) or resistance to change, others argue it’s an oversimplification, pointing to a powerful elite, systemic issues, or a repeating generational blame cycle, with many Boomers themselves feeling unfairly targeted and facing their own financial struggles.
- The Aging And Disability Crisis We Can’t Afford To Ignore
- The Global Aging Crisis Demands Urgent Action Beyond Economics
- Baby boomers have now ‘gobbled up’ nearly one-third of America’s wealth share, and they’re leaving Gen Z and millennials behind.
- 64% of U.S. adults fear financial collapse more than the end of life itself
8 – Infrastructure Crisis – Amazingly, the 2008 financial crisis was suppose to see a large portion of the money creation to save us, go to fix an already crumbling national infrastructure. sadly, much of the money stayed in Wall Street and never made it to Main Street.
9 – Islamic Takeover Of The United States Has Begun.
10 – NY Jets Never Make The Playoffs Again
You can either join me here now:
Or make sure you have great running sneakers:
