Month: June 2019

Jun

2019

Three Charts That Say the Fed Can’t Save Stocks Here

The vast majority of investors think the Fed will cut rates at its meeting this Wednesday.

Maybe it will, maybe it won’t.

The reality is what the Fed does now doesn’t really matter. Globally the economy is contracting… and the last two times the Fed started cutting rates into a slowing economy didn’t work out so well for stocks.

Those times were early 2000 and late 2007… both times the stock market subsequently plunged 50%.

Will this time prove different?

Copper, Treasuries, Fed Ex and Oil all say “NO”… they are all forecasting that fair value for the S&P 500 is at 2,500 or lower.

Bear in mind… this is based on an economic recovery hitting in the second half of this year… if a crisis hits, a 50% drop puts S&P 500 down at 1,450.

So while stocks may hold up for a little longer based on hype and hope… economic reality tells us we’re primed for a major collapse.

The bull market is over… we’ve had a failed backtest of the former trendline. The next move is DOWN.

Those investors who take the right steps to prepare for this, will make literal fortunes.

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.

Today is the last day this report will be available to the general public.

To pick up one of the last remaining copies…

https://www.phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Jun

2019

What Policies Will the Fed Introduce When Rate Cuts Aren’t Enough to Save Stocks?

While everyone else is focusing on whether or not the Fed will hike rates next week… I’m much more concerned about what the Fed does when it realizes that rate cuts won’t save the markets.

Remember, the last two times the Fed started cutting rates during an economic downturn were 2000 and 2007.

We all remember what happened to stocks during those periods.

Here’s a brief reminder.

Put simply, during an economic downturn, rate cuts aren’t enough to save the markets… which is probably why the Fed is already laying the ground work for truly EXTREME monetary policy.

In the last three months we’ve seen Fed officials suggest that the Fed should:

1)   Make QE a REGULAR monetary policy (as opposed to one used exclusively during emergencies).

2)   Introduce negative interest rates.

3)   Directly intervene in the bond markets to stop yields from reaching certain levels… on a daily basis if needed.

4)   Directly infuse capital straight into the financial system (helicopter money).

The fact the Fed is already suggesting these policies now, BEFORE a crisis hits, tells us just how serious this situation is.

What is it that has the Fed so terrified that it’s openly talking about introducing extreme polices before a crisis hits?

The Everything Bubble has burst…

Purple Circle Shows the Treasury Bubble Bursting

And stocks know it….

Red Lines Show Bull Markets Ending and Crises Beginning

The last two times stocks broke down like this were October of 2000 and December of 2007… just before the markets entered the Tech Crash… and the Great Financial Crisis of 2008.

Will the Fed succeed in stopping the system from experiencing another crisis?

I don’t know… but I DO KNOW that they will be introducing EXTREME monetary policies to try and stop another financial crisis from happening.

Those investors who take the right steps to prepare for those policies, will make literal fortunes.

On that note, we are putting together an Executive Summary outlining what’s coming in terms of Fed Policy when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Jun

2019

Stocks Know the Everything Bubble Has Burst… and Rate Cuts Won’t Save Them

While everyone else is focusing on whether or not the Fed will hike rates next week… I’m much more concerned about what the Fed does when it realizes that rate cuts won’t save the markets.

Remember, the last two times the Fed started cutting rates during an economic downturn were 2000 and 2007.

We all remember what happened to stocks during those periods.

Here’s a brief reminder.

Put simply, during an economic downturn, rate cuts aren’t enough to save the markets… which is probably why the Fed is already laying the ground work for truly EXTREME monetary policy.

In the last three months we’ve seen Fed officials suggest that the Fed should:

1)   Make QE a REGULAR monetary policy (as opposed to one used exclusively during emergencies).

2)   Introduce negative interest rates.

3)   Directly intervene in the bond markets to stop yields from reaching certain levels… on a daily basis if needed.

4)   Directly infuse capital straight into the financial system (helicopter money).

The fact the Fed is already suggesting these policies now, BEFORE a crisis hits, tells us just how serious this situation is.

What is it that has the Fed so terrified that it’s openly talking about introducing extreme polices before a crisis hits?

The Everything Bubble has burst…

Purple Circle Shows the Treasury Bubble Bursting

And stocks know it….

Red Lines Show Bull Markets Ending and Crises Beginning

The last two times stocks broke down like this were October of 2000 and December of 2007… just before the markets entered the Tech Crash… and the Great Financial Crisis of 2008.

Will the Fed succeed in stopping the system from experiencing another crisis?

I don’t know… but I DO KNOW that they will be introducing EXTREME monetary policies to try and stop another financial crisis from happening.

Those investors who take the right steps to prepare for those policies, will make literal fortunes.

On that note, we are putting together an Executive Summary outlining what’s coming in terms of Fed Policy when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Jun

2019

The Last Two Times the Fed Cut Rates Into a Downturn, Stocks Dropped ~50%

While everyone else is focusing on whether or not the Fed will hike rates next week… I’m much more concerned about what the Fed does when it realizes that rate cuts won’t save the markets.

Remember, the last two times the Fed started cutting rates during an economic downturn were 2000 and 2007.

We all remember what happened to stocks during those periods.

Here’s a brief reminder.

Put simply, during an economic downturn, rate cuts aren’t enough to save the markets… which is probably why the Fed is already laying the ground work for truly EXTREME monetary policy.

In the last three months we’ve seen Fed officials suggest that the Fed should:

1)   Make QE a REGULAR monetary policy (as opposed to one used exclusively during emergencies).

2)   Introduce negative interest rates.

3)   Directly intervene in the bond markets to stop yields from reaching certain levels… on a daily basis if needed.

4)   Directly infuse capital straight into the financial system (helicopter money).

The fact the Fed is already suggesting these policies now, BEFORE a crisis hits, tells us just how serious this situation is.

What is it that has the Fed so terrified that it’s openly talking about introducing extreme polices before a crisis hits?

The Everything Bubble has burst…

Purple Circle Shows the Treasury Bubble Bursting

And stocks know it….

Red Lines Show Bull Markets Ending and Crises Beginning

The last two times stocks broke down like this were October of 2000 and December of 2007… just before the markets entered the Tech Crash… and the Great Financial Crisis of 2008.

Will the Fed succeed in stopping the system from experiencing another crisis?

I don’t know… but I DO KNOW that they will be introducing EXTREME monetary policies to try and stop another financial crisis from happening.

Those investors who take the right steps to prepare for those policies, will make literal fortunes.

On that note, we are putting together an Executive Summary outlining what’s coming in terms of Fed Policy when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Jun

2019

If Everything Is Under Control… Why is the Fed Talking Permanent QE, NIRP, and more?

While everyone else is focusing on whether or not the Fed will hike rates next week… I’m much more concerned about what the Fed does when it realizes that rate cuts won’t save the markets.

Remember, the last two times the Fed started cutting rates during an economic downturn were 2000 and 2007.

We all remember what happened to stocks during those periods.

Here’s a brief reminder.

Put simply, during an economic downturn, rate cuts aren’t enough to save the markets… which is probably why the Fed is already laying the ground work for truly EXTREME monetary policy.

In the last three months we’ve seen Fed officials suggest that the Fed should:

1)   Make QE a REGULAR monetary policy (as opposed to one used exclusively during emergencies).

2)   Introduce negative interest rates.

3)   Directly intervene in the bond markets to stop yields from reaching certain levels… on a daily basis if needed.

4)   Directly infuse capital straight into the financial system (helicopter money).

The fact the Fed is already suggesting these policies now, BEFORE a crisis hits, tells us just how serious this situation is.

What is it that has the Fed so terrified that it’s openly talking about introducing extreme polices before a crisis hits?

The Everything Bubble has burst…

Purple Circle Shows the Treasury Bubble Bursting

And stocks know it….

Red Lines Show Bull Markets Ending and Crises Beginning

The last two times stocks broke down like this were October of 2000 and December of 2007… just before the markets entered the Tech Crash… and the Great Financial Crisis of 2008.

Will the Fed succeed in stopping the system from experiencing another crisis?

I don’t know… but I DO KNOW that they will be introducing EXTREME monetary policies to try and stop another financial crisis from happening.

Those investors who take the right steps to prepare for those policies, will make literal fortunes.

On that note, we are putting together an Executive Summary outlining what’s coming in terms of Fed Policy when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Jun

2019

The President Is Now Part of the Fed’s “Pro-Inflation PR Campaign.”

Yesterday’s article outlined how overly hawkish Fed policy burst the Everything Bubble…

The Fed is now in the process of trying to “patch” over the bursting bubble, to stop the financial system from experiencing another crisis.

And President Trump just “signed off” of the Fed’s plan.

You see, according to the Fed’s Dual Mandate (the mandate as issue by the US Congress to the Fed in 1977), the Fed is meant to pursue two things:

1) Price stability (controlled inflation)

2) Maximum employment (economic growth)

It was the Fed’s attempt to accomplish this in 2018 that lead to the Everything Bubble bursting…

At that time, the Fed believed inflation was getting out of control… and that economic growth was raging hot…

So the Fed embarked on its most aggressive monetary policy in history…

First it hiked interest rates four times per year.

Secondly it shrank its balance sheet at a pace of $50 billion per month… or $600 billion per year.

By the way, when the Fed shrinks its balance sheet by $200 billion, it represents the equivalent to another rate hike…

So the Fed technically raised rates SEVEN times in 2018 (four rate hikes plus a balance sheet reduction of $600 billion).

This burst the Everything Bubble, with yields on US Treasuries breaking out of their 30+ year long-term downtrend.

And because the US economy is so saturated with debt… this increase in yields began to hurt the economy as well (debt payments rose, cutting into cash flows).

This is what prompted the Fed to completely abandon its hawkishness at the end of 2018…

Since that time, the Fed has begun crafting a plan to “patch over” the leaking Everything Bubble.

That plan consists of the Fed dropping the inflation component of its Dual Mandate… and pursing economic growth regardless of whether or not it unleashes higher rates of inflation.

And the President just “signed off” on this plan… publicly via his Twitter account.

As usual the talking heads will ridicule the President, saying he doesn’t understand inflation… or some other insult.

The truth is, this was the President openly telling the Fed to pursue growth by any means necessary…

Put another way… the President of the United States told the US Central Bank… “start stimulating NOW.”

The Fed is already talking about unleashing non-stop Quantitative Easing, cutting interest rates to negative and more…

Can you imagine what the Fed will do now that President himself is pushing for higher inflation?

On that note we offer a Special Investment Report concerning FIVE investments you can use to make inflation pay you as it rips through the financial system in the months ahead.

The report is titled Survive the Inflationary Storm

We made 100 copies available to the public.

Currently there are just handful left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Jun

2019

The Fed is Going to Let Inflation Rage… and the President Is Fine With It