The expert asked rhetorically, “Where will you put your (money to save for) retirement?” In bonds or a bank, which offer little or no interest? Then Hicks gave the correct answer: “The only place you’re going to put assets today would be in the stock market.” Once the Federal Reserve lessens its bond purchases, bond rates will rise. The speaker predicted the stock market could come down “rather precipitously.” He reflected, “I’d be the richest man in the world if I could predict a (stock market) bubble confidently.”
Jeff Stratman, the Aurora city attorney, asked about a prediction Hicks made while speaking in Batesville a year ago that didn’t come true. The economist admitted that he thought 18 months ago the U.S. would go into another recession, following Europe. Hicks said he was particularly worried about Indiana, which exports many goods to European Union countries.
Hicks explained the reason he was wrong was “our biggest trading partners (Germany and England) really weren’t part of the European recession. In the past, the whole continent moved together” in economic fortunes.
“We did dodge that recession. That’s good news, but we’re still feeling a hangover” from European economic activities.
Debbie Blank can be contacted at email@example.com or 812-934-4343, Ext. 113.
Second in a two-part series Part 1: Dr. Hicks contemplates a Walmart in Batesville and forecasts how the region, state and nation will do economically, Dec. 17