Forget about normalization, the Fed is terrified.
The Fed officially began Quantitative Tightening in October. To date, the Fed has shrunk its balance sheet by less than $40 billion. And already Fed officials are so spooked by stocks falling, that they’re promising more QE down the road… including an implicit purchasing of stocks.
To whit, on Friday, Boston Fed President Eric Rosengren stated the following:
If LSAPs (read: QE used to buy debt instruments) are indeed not effective, then the Fed may need to take other measures”
Let’s be clear here… a major Fed official is implying the Fed should consider monetizing other assets, possibly even stocks… at a time when stocks are a mere 6% off ALL.TIME.HIGHS.
Just how vulnerable the US financial system that the Fed can’t even stomach a NORMAL 10% correction without talking about QE again?
Let’s be clear here. The Fed is terrified of the Everything Bubble bursting. And we’re a lot closer to a crisis than most realize.
On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.
In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.
We’ve extended our offer to download this report FREE due to the market breakdown. But this week is the last time this report will be available to the general public.
To pick up one of the last remaining copies…
Chief Market Strategist
Phoenix Capital Research