Ask Doc The job of the most powerful man in the world involves 98% talk and 2% action.
At least, that's what former U.S. Federal Reserve Chair Ben Bernanke believes about his time spent in the role.
As chairman, he oversaw the world's largest economy, making him arguably the most influential person in the world.
Officially, the Fed's purpose is to stabilize the massive $28 trillion economy. It does this by setting the country's monetary policy to help control inflation and encourage growth.
But Bernanke's comments acknowledge the job is as much about managing the public's mood as it is about manipulating interest rates and money supply.
Bernanke, his successor Janet Yellen, and current Fed Chair Jerome Powell have communicated relentlessly with the public. The Fed signaling every step it's going to take months in advance has become the norm.
This emphasis on communication reflects the fact that the economy and financial markets are made up of real people who make their own decisions and exercise their own free will.
When the Fed wants to, say, boost growth and inflation, it can reduce interest rates as much as it wants... But inflation won't move until the public is comfortable enough to spend that money.
The economy boils down to cold, hard transactions. And behind every transaction is a human decision. Consumers spend and businesses invest when they are optimistic about the future. Nothing can get an economy humming again like a widespread belief that things are improving.
The best way to gauge the current state of the economy is, hands down, consumer behavior.
I spend most of each year traveling tens of thousands of miles around the world, keeping my "boots on the ground"... And lately, I can tell you I see consumers spending. On my flights back and forth across the U.S., planes have been packed. This is a great sign.
Indicators like consumer spending, crucially, give us insight into the bigger picture.
While most investors wait with bated breath to see what the Fed will do with interest rates next or to get the latest news on the "Magnificent Seven," smart investors will look at the bigger picture.
Chipmaker Nvidia has dominated the headlines and carried much of the overall market this year, so it's easy to forget that the tech sector isn't the only place you should be investing today. But it's not easy to follow the larger market, unless you want it to be your full-time job. (And who wants to sit in front of their computer all day staring at market movements?)
My friend Marc Chaikin – founder of Chaikin Analytics – thinks investors who aren't paying attention to the overall market could be in big trouble.
Marc believes we're headed for a "rolling bull market," which can be particularly brutal on the average investor. Some industries will have historic years while others crash and burn. The trick is knowing which is which. This is why Marc is heavily leveraging his Industry Monitor to help his subscribers navigate the market's individual sectors.
Next Thursday, Marc will share why you shouldn't just follow the popular indicators... where to find a more accurate outlook on stocks... and how to pick the right sector during a rolling bull market. This knowledge can make or break fortunes.
Click here to reserve your spot today.
Let's dig into the Q&A... As always, keep sending your comments, questions, and topic suggestions to [email protected]. My team and I really do read every e-mail.
Q: I have read many times of the dangers of ingesting sugar due to creation of inflammation, and artificial sweeteners due to adversely affecting gut bacteria. But here are a few things that I consume, and do not wish to give up completely, that have versions in one or the other, in particular, sugar or sucralose. In your opinion, which is the worst of the two, in a reasonably otherwise healthy individual? Thanks. – C.M.
A: Longtime readers know that I don't like consuming sugar or artificial sweeteners. As you've already mentioned, C.M., sugar can cause a rapid increase in blood sugar. In turn, elevated blood-sugar levels trigger the production of fat, increase inflammation, and raise blood pressure.
Over time, high blood sugar can cause health complications like kidney disease, nerve damage, and heart disease. And if you regularly eat too much sugar, your body could stop responding to insulin properly, leading to diabetes.
Lots of folks turn to artificial sweeteners as the "healthy" alternative to sugar. But over the past few years, study after study has shown that these sweeteners aren't safe. Sucralose, for example, triggers blood-sugar spikes. Xylitol can increase your risk of stroke and heart attack.
I'm not sure what foods you're trying to keep sweet, but ask yourself if that sweetener is necessary. If it's really a food you don't want to give up, limit it. Even better... try removing the sugar or artificial sweetener from it. I recently started leaving the sugar out of waffle batter, and I barely notice the difference.
Q: Do you have a preference for regular blueberries (what you can buy in a pint) or the smaller, wild kind? – M.A.
A: We mentioned last week that wild blueberries have more antioxidants than farmer-grown ones – 13,427 per cup versus 9,019, respectively. The smaller, wild ones also have a bolder flavor. They are the ones I prefer to buy and keep in my freezer. Even if you don't live in Maine (the wild blueberry capital of the U.S.), you should be able to find the wild kind in your local grocery store's freezer section. If not, don't worry... The farmer-grown variety is still a superfood.
What We're Reading...
- Did you miss it? Investors are all following the same playbook.
- Something different: The history of "Yankee Doodle."
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
September 13, 2024