Federal Reserve
Here’s How You Play These Choppy Market Waters
An explosive rally started off Friday morning’s trading day, fueled by rumors that China might be easing on its “zero Covid” policy. But it was short-lived: by midday indexes were either down or flatlining. This kind of intraday volatility is going to be with us for a while going forward, and I want you to […]
We Could Be Looking at Another 25% Market Plummet – History Tells Us Why
Yesterday’s Federal Open Market Committee (FOMC) meeting held few surprises. Instead, we got another 75 basis points hike on interest rates and no forward guidance on when they’ll taper their hiking regime. What they did say may have sounded like it has substance, but it didn’t. When they talked about taking cumulative hikes and lags […]
The Death Knell for Zombie Companies Is Coming – Here’s How to Profit
As if you didn’t know, the Federal Reserve’s continuing to send shockwaves through the market by raising interest rates, and they will likely raise the fed funds rate another 75 basis points at their November 2, 2022 FOMC meeting. But what you may not know is this: higher rates are already impacting corporate borrowers (especially […]
Cracks in Bond Markets Won’t Scare Off the Fed – Here’s What to Do
The almost 6% rally U.S. stock markets enjoyed Monday and Tuesday this week was based on the belief that the Fed would soon have to “pivot,” stop raising rates and start lowering them. Pivot talk worked its magic on stocks this time because investors believed the Fed could not ignore scary cracks in global bond […]
The Fed Wants the Stock Market to Drop – Here’s How to Protect Yourself
Barring some kind of existential crash that knocks 50% off equities in a matter of days or weeks, the Federal Reserve’s not coming to rescue the bear market from itself. So, we’ve got lower to go. The reason why centers around a phenomenon called the “wealth effect,” and the Fed knowing that what worked on […]
ICYMI: The Toxic Stocks You Need to Ditch Right Now
There’s no doubt about it – we’re on the cusp of what may be a huge market crash, thanks to the Fed’s continued raising of interest rates. But if you’ve been following me a while, you know I’m fond of saying that every market, bad or good, has opportunities to make money if you know […]
Score Triple-Digit Gains While the Fed Tightens Its Belt
While Wall Street, investors, the media, and the public are hyper-focused on the Federal Reserve’s rate hiking policy path, the same trap door markets fell through in 2018 is about to open wide, and nobody’s talking about it. The trap door is the Fed’s quantitative tightening (QT) plan, the opposite of its bull market friendly […]
How You Should Play the Fed’s Punch-Drunk Plan to Fight Inflation
A year ago, the Fed had no plan to combat rising prices. Now they want the world to know they’ve got a plan to beat back what looks like increasingly sticky inflation because now their credibility is at stake.
That plan, which should be pre-set, steady, transparent, and formally announced as “forward guidance,” is instead going to be made up every six weeks when the Federal Open Market Committee (FOMC) meets.
Whether to raise the fed funds rate 25 basis points, 50 basis points, or 75 basis points (a basis point is one one-hundredth of a percentage point) at the FOMC’s upcoming May 3-4 meeting, or any subsequent meeting, isn’t set. And that is upending both stock and bond markets, and proof the Fed’s out of control.
The Fed raising rates isn’t going to kill inflation. There’s no way they could ever raise rates enough to kill it, and that gives us an opportunity.
Read more about the Fed’s inevitable failure to fix inflation and how you should play it.
Here’s Why the Fed Pulling Another “Saturday Night Massacre” Would be the Best Thing for the Markets
The Federal Reserve’s not the problem, or maybe it is.
Economic growth, job creation, narrowing the wealth gap, equal opportunity in America, are the problems, but not the Fed’s problems.
Those problems should fall on the administration in power and Congress, but instead, the Fed has made these problems their concern, and if that doesn’t change, our economy could be headed for trouble, big trouble. We’re talking a meltdown that will put the Great Recession to shame.
On October 10, 2020, the Saturday before Columbus Day, the Fed should announce a new role for itself, one that will shake up markets, politics, and the country, but ultimately result in the problems the Fed can’t fix being addressed and fixed by presidents and Congress.
It’s been done before. On the Saturday prior to Columbus Day in 1979, then Fed chairman Paul Volcker, the last strong, independent Federal Reserve chairman, changed America’s future.
The Federal Reserve: Not the All-Powerful Oz You May Think It Is
The privately owned and controlled Federal Reserve System, America’s so-called central bank, is more powerful than the U.S. government. In fact, it controls our government by financing particularly Fed-friendly governments, as only it can. MEET DAVID He’s got a 95% success rate and $20 million net worth. He’s one of New York’s most successful angel […]