Month: August 2020

The Fed has finally made up its mind… it wants inflation.

Ever since the great financial crisis of 2008, the big question has been:

What will be the ultimate outcome from all this money printing/ Fed intervention… another deflationary collapse or an inflationary storm?

Some 12 years later… we finally have our answer… it will be an inflationary storm.

Last week the Fed announced:

1)     It is changing its inflationary target from 2% to an average of 2% (meaning inflation could overshoot to the upside).

2)    That it was comfortable with inflation as high as 3% as long as it does so at a manageable rate.

Remember, this is the Fed we are talking about, not some gold bug. So, the mere fact the Fed is even suggesting that it is OK with higher rates of inflation has systemic implications.

The Fed has long averred that inflation was nowhere to be found… that it if ever did show up that the Fed could easily contain it… and that truthfully none of us need to worry about inflation ever getting out of control.

So, the fact the Fed is suddenly OK with inflation running hot is akin to a structural engineer saying, “I’m fine with this massive dam leaking, possibly even a lot… provided the leaks occur in a way that is manageable.”

You get where I’m going with this.

And so do the markets.

Take a look at Lumber.

How about Copper?

And then there’s gold and silver… which have already begun their next legs up.

The Fed is not just talking about wanting inflation either.

In response to the Great Financial Crisis of 2008, the Fed printed $3 trillion in new money from 2008 to 2016.

It’s already printed MORE that that in the last six months.

And its current QE programs mean AT LEAST an additional $1.8 trillion in new money being printed every year going forward.

This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.

Indeed, gold has already exploded higher to over $2,000 per ounce. Imagine where it and other inflation hedges will go by the time the Fed has REALLY turned on the printing presses.

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 17 left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The Fed has finally made up its mind… it wants inflation.

Ever since the great financial crisis of 2008, the big question has been:

What will be the ultimate outcome from all this money printing/ Fed intervention… another deflationary collapse or an inflationary storm?

Some 12 years later… we finally have our answer… it will be an inflationary storm.

Last week the Fed announced:

1)     It is changing its inflationary target from 2% to an average of 2% (meaning inflation could overshoot to the upside).

2)    That it was comfortable with inflation as high as 3% as long as it does so at a manageable rate.

Remember, this is the Fed we are talking about, not some gold bug. So, the mere fact the Fed is even suggesting that it is OK with higher rates of inflation has systemic implications.

The Fed has long averred that inflation was nowhere to be found… that it if ever did show up that the Fed could easily contain it… and that truthfully none of us need to worry about inflation ever getting out of control.

So, the fact the Fed is suddenly OK with inflation running hot is akin to a structural engineer saying, “I’m fine with this massive dam leaking, possibly even a lot… provided the leaks occur in a way that is manageable.”

You get where I’m going with this.

And so do the markets.

Take a look at Lumber.

How about Copper?

And then there’s gold and silver… which have already begun their next legs up.

The Fed is not just talking about wanting inflation either.

In response to the Great Financial Crisis of 2008, the Fed printed $3 trillion in new money from 2008 to 2016.

It’s already printed MORE that that in the last six months.

And its current QE programs mean AT LEAST an additional $1.8 trillion in new money being printed every year going forward.

This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.

Indeed, gold has already exploded higher to over $2,000 per ounce. Imagine where it and other inflation hedges will go by the time the Fed has REALLY turned on the printing presses.

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 17 left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Well, they finally did it. 

Having thrown over $6 trillion in newly printed money at the financial system, central banks managed to push the stock market to new all-time highs last week.

The S&P 500 broke above its all-time high of 3,393 briefly last week before closing the week down from this level. Emboldened by this, traders will try to push the market to new highs this week on a closing basis.

And why wouldn’t they? Central banks have spent over $6 trillion since the March lows. To put that into perspective, the last time central banks spent this much money, it took them FOUR YEARS (2008-2012). This time around it took FIVE MONTHS (March-July 2020).

Put simply, central banks are “all in” on creating a massive bubble in the stock market.

And they will be using the FANG stocks to do this. 

The fact is that since the market bottom, the FANG stocks have done almost all the heavy lifting, holding the rest of the market up for months.

Even with their recent correction, they’ve nearly DOUBLED the performance of the S&P 500 from the March lows.

Put another way, time and again, no matter how overbought they became, the big FANG stocks continue to rally higher and higher, driven by “someone” who seemed hellbent on insuring the market didn’t collapse again.

Why were companies outperforming/rallying so much? 

Because the large tech stocks (Microsoft, Apple, Amazon, Facebook) are where central banks are buying.

Together these companies account for nearly 20% of the stock market. And if central banks can get them to rally, the rest of the market will follow.

Put another way, if you were going to rig the market, these are the companies you’d be buying.

And with the same stocks moving higher day after day like clockwork, it’s pretty clear it’s central banks doing the buying.

We know the Swiss National bank buys these companies. And I strongly suspect the Fed is doing it to via some backdoor method.

Regardless of who is doing the buying, “someone” is ramping the market using these companies. And very likely they will continue to do so no matter what.

Regardless of who is doing the buying, “someone” is ramping the market using these companies. And very likely they will continue to do so no matter what.

At the end of the day, it all boils down to what I’ve been saying since 2017… that the Fed and other central banks are trapped in a vicious cycle through which it INTENTIONALLY creates bubbles to deal with each successive bust.

We had the Tech Bubble in the ’90s.

The Housing Bubble in the mid-00s.

And now the Everything Bubble in 2020.

On that note, we’re putting together an Executive Summary on how to play this move.

It will identify which investments will perform best during the Fed’s next bubble, including a unique play that could more than double the performance of the S&P 500.

This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Well, they finally did it. 

Having thrown over $6 trillion in newly printed money at the financial system, central banks managed to push the stock market to new all-time highs last week.

The S&P 500 broke above its all-time high of 3,393 briefly last week before closing the week down from this level. Emboldened by this, traders will try to push the market to new highs this week on a closing basis.

And why wouldn’t they? Central banks have spent over $6 trillion since the March lows. To put that into perspective, the last time central banks spent this much money, it took them FOUR YEARS (2008-2012). This time around it took FIVE MONTHS (March-July 2020).

Put simply, central banks are “all in” on creating a massive bubble in the stock market.

And they will be using the FANG stocks to do this. 

The fact is that since the market bottom, the FANG stocks have done almost all the heavy lifting, holding the rest of the market up for months.

Even with their recent correction, they’ve nearly DOUBLED the performance of the S&P 500 from the March lows.

Put another way, time and again, no matter how overbought they became, the big FANG stocks continue to rally higher and higher, driven by “someone” who seemed hellbent on insuring the market didn’t collapse again.

Why were companies outperforming/rallying so much? 

Because the large tech stocks (Microsoft, Apple, Amazon, Facebook) are where central banks are buying.

Together these companies account for nearly 20% of the stock market. And if central banks can get them to rally, the rest of the market will follow.

Put another way, if you were going to rig the market, these are the companies you’d be buying.

And with the same stocks moving higher day after day like clockwork, it’s pretty clear it’s central banks doing the buying.

We know the Swiss National bank buys these companies. And I strongly suspect the Fed is doing it to via some backdoor method.

Regardless of who is doing the buying, “someone” is ramping the market using these companies. And very likely they will continue to do so no matter what.

Regardless of who is doing the buying, “someone” is ramping the market using these companies. And very likely they will continue to do so no matter what.

At the end of the day, it all boils down to what I’ve been saying since 2017… that the Fed and other central banks are trapped in a vicious cycle through which it INTENTIONALLY creates bubbles to deal with each successive bust.

We had the Tech Bubble in the ’90s.

The Housing Bubble in the mid-00s.

And now the Everything Bubble in 2020.

On that note, we’re putting together an Executive Summary on how to play this move.

It will identify which investments will perform best during the Fed’s next bubble, including a unique play that could more than double the performance of the S&P 500.

This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Yesterday was a big of a shakeout.

The fact is that the Fed balance sheet has flatlined since mid-May. The Fed claims that it is providing $120 billion in liquidity per month… but in reality this has NOT  been the case for two to three months.

Stocks, which were extremely overbought going into this week, woke up to this fact yesterday with the first round of intense selling we’ve seen in weeks.

Every major index finished the day down. The extremely popular FANG stocks were liquidated.

Do not count on this trend continuing. The Fed or whoever is rigging the market, will be back to work shortly…

The fact is that since the market bottom, the FANG stocks have done almost all the heavy lifting, holding the rest of the market up for months.

Even with their recent correction, they’ve more than TRIPLED the performance of the S&P 500 from the March lows.

Put another way, time and again, no matter how overbought they became, the big FANG stocks continue to rally higher and higher, driven by “someone” who seemed hellbent on insuring the market didn’t collapse again.

Why were companies outperforming/rallying so much? 

Because the large tech stocks (Microsoft, Apple, Amazon, Facebook) are where central banks are buying.

Together these companies account for nearly 20% of the stock market. And if central banks can get them to rally, the rest of the market will follow.

Put another way, if you were going to rig the market, these are the companies you’d be buying.

And with the same stocks moving higher day after day like clockwork, it’s pretty clear it’s central banks doing the buying.

We know the Swiss National bank buys these companies. And I strongly suspect the Fed is doing it to via some backdoor method.

Regardless of who is doing the buying, “someone” is ramping the market using these companies. And very likely they will continue to do so no matter what.

At the end of the day, it all boils down to what I’ve been saying since 2017… that the Fed and other central banks are trapped in a vicious cycle through which it INTENTIONALLY creates bubbles to deal with each successive bust.

We had the Tech Bubble in the ’90s.

The Housing Bubble in the mid-00s.

And now the Everything Bubble in 2020.

On that note, we’re putting together an Executive Summary on how to play this move.

It will identify which investments will perform best during the Fed’s next bubble, including a unique play that could more than double the performance of the S&P 500.

This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The single biggest issue for the world today is that there is too much debt in the financial system. Some eye-water facts:

Globally the debt to GDP ratio is 322%.

Amongst G-7 nations, the numbers are striking.

• The U.S.’s Debt to GDP is 106%
• Germany’s Debt to GDP is 61%
• Japan’s Debt to GDP is 196%
• The United Kingdom’s Debt to GDP is 85%
• Canada’s Debt to GDP is 89%
• France’s Debt to GDP is 98%.

The only one that looks remotely decent is Germany and that’s because the country has been aggressively paying down its debt. During the 2008 crisis, Germany’s debt to GDP skyrocketed to 82% as its economy collapsed and it went on a Debt binge.

Put another way, of the seven largest developed nations, only one of them has a debt to GDP below 85%… and that is very likely to change during its next major recession.

Again, the world has too much debt. No major nation is an exception.

Now there are three ways to deal with excessive debt.

1)    Pay it off through growth or fiscal restraint.

2)    Default/ restructure.

3)    Attempt to inflate it away by debasing your currency.

Of these, the only viable option is #3.

This sounds like a complicated idea, but really, inflating the debt away means money printing.

Think of it this way. Let’s say you owe $1,000 in debt. Now imagine that the dollar loses 50% of its value. You still owe $1,000 in debt, but because each unit of debt is worth so much less, your REAL cost of the debt is only $500 in today’s terms.

This is the only option major nations have today. And it’s one that policymakers LOVE to use as the COVID-19 pandemic has revealed.

Consider the following…

In response to the Great Financial Crisis of 2008, central banks printed $7 trillion in new money from 2008 to 2012.

In response to the COVID-19 pandemic, they’ve printed almost as much money ($6 trillion and change) in 2020 alone.

Again, the COVID-19 pandemic has revealed that going forward policy maker’s response to every problem will involve printing money.

This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 3 left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The single biggest issue for the world today is that there is too much debt in the financial system. Some eye-water facts:

Globally the debt to GDP ratio is 322%.

Amongst G-7 nations, the numbers are striking.

• The U.S.’s Debt to GDP is 106%
• Germany’s Debt to GDP is 61%
• Japan’s Debt to GDP is 196%
• The United Kingdom’s Debt to GDP is 85%
• Canada’s Debt to GDP is 89%
• France’s Debt to GDP is 98%.

The only one that looks remotely decent is Germany and that’s because the country has been aggressively paying down its debt. During the 2008 crisis, Germany’s debt to GDP skyrocketed to 82% as its economy collapsed and it went on a Debt binge.

Put another way, of the seven largest developed nations, only one of them has a debt to GDP below 85%… and that is very likely to change during its next major recession.

Again, the world has too much debt. No major nation is an exception.

Now there are three ways to deal with excessive debt.

1)    Pay it off through growth or fiscal restraint.

2)    Default/ restructure.

3)    Attempt to inflate it away by debasing your currency.

Of these, the only viable option is #3.

This sounds like a complicated idea, but really, inflating the debt away means money printing.

Think of it this way. Let’s say you owe $1,000 in debt. Now imagine that the dollar loses 50% of its value. You still owe $1,000 in debt, but because each unit of debt is worth so much less, your REAL cost of the debt is only $500 in today’s terms.

This is the only option major nations have today. And it’s one that policymakers LOVE to use as the COVID-19 pandemic has revealed.

Consider the following…

In response to the Great Financial Crisis of 2008, central banks printed $7 trillion in new money from 2008 to 2012.

In response to the COVID-19 pandemic, they’ve printed almost as much money ($6 trillion and change) in 2020 alone.

Again, the COVID-19 pandemic has revealed that going forward policy maker’s response to every problem will involve printing money.

This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 3 left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research