Why Market Risk May Be Higher Than You Think: Reason #3 of 5...

3. Deflation is already here. 

Consumer prices have fallen for 3 months in a row. And, most ominously, it's affecting wages too. The Bureau of Labor Statistics reports that, last quarter, workers earned -0.7% less in real terms per hour than they did a year ago. No wonder the Fed is worried.

In deflation, wages, company revenues, and the value of your home and your investments may shrink in dollar terms. But your debts stay the same size.

That makes deflation a vicious trap, especially if people owe way too much money.