Many commentators are baffled that Ben Bernanke decided NOT to announce QE 3 a month ago.
The reason for this is obvious: the Fed only got about three months’ worth of positive economic movement from QE 2 and it blew gas and commodities through the roof doing it.
Remember, QE 2 was only just announced in November 2010. And anyone watching the US economic data knows that we took a sharp turn for the worse in Feb 2011.
So all told, we spent some $600 billion and only got about three months’ worth of improved economic data (not to mention that this “improved” data was massaged heavily).
So it’s pretty obvious why the Fed hasn’t announced QE 3 yet… it needs things to get terrible in the financial markets again so everyone will be clamoring for it to intervene.
Remember last year? QE ended in March. Then we get the worst May performance in over 40 years with stocks dropping like a brick… which then allowed the Fed to announced QE lite and QE 2.
Just like today.
The Fed is going to let QE 2 end in June. We will very likely see some kind of collapse in stocks start even before then. My personal expectation is the S&P 500 will drop to 1,100 or so at which time it will announced QE 3 with a “SEE? We NEED Qe in order to keep things afloat.”
And that’s when the US Dollar will REALLY collapse and inflation hedges will explode across the board.
The Fed is already setting this up. Their latest FOMC minutes make it clear that they are downplaying the negative news today so that when things get REALLY bad in a few months, they can act surprised and push for a MASSIVE QE program.
So in the near-term deflation is now the biggest risk. It may only be for a month or so, but it’s coming (commodities’ and the US Dollar’s performance over the last two weeks were the warm-up. And then comes the REAL fireworks.
… which is why I’m already preparing subscribers of my Private Wealth Advisory newsletter for this with three investments that will all lock in double digit returns in a matter of days when deflation hits.
Indeed, all three of them are up sharply in the last few weeks alone… and we haven’t even gotten to the REAL deal for the markets yet.
To take action now so you’ll profit from the coming round of deflation while ALSO preparing your portfolio for hyperinflation (which will erupt as soon as the Fed announces QE 3 later this year), all you need to do is take out a trial subscription to my Private Wealth Advisory newsletter.
You’ll immediately be access to my latest issue (published just one hour ago) featuring our three new “deflation trades.”
You’ll also receive my SIX PART How to Survive Hyperinflation report detailing exactly how and when hyperinflation will hit the US Dollar and which FIVE investments will outperform even Gold and Silver when it does.
Heck, you can even keep these reports if you decide Private Wealth Advisory isn’t for you and request a full 100% refund during the first 30 days of your subscription.
To take out a trial subscription to Private Wealth Advisory, and take action to prepare your portfolio from both deflation (now) and hyperinflation (coming)…
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Editor In Chief
Gains Pains & Capital