You Better Position Yourself For This Now, Because It’s Coming Soon!


On a day-to-day basis, the market is chopping.

Indeed, the S&P 500 made a large jump over the weekend, but has effectively chopped in a 10 point range ever since.

However, despite the day-to-day gyrations, the BIG PICTURE framework remains the same.

THE FED WANTS INFLATION.

We’ve been tracking the idiotic statements various Fed officials have made concerning inflation in the last few weeks. This week Chicago President Charles Evans made the following jaw-dropping statements.

  • It will take some time for price pressures to sustainably hit the central bank’s 2% target.
  • The Fed only needs to be concerned if there’s bothersome inflation.
  • Inflation up to 2.5% or even 3% would be welcome.

Let’s be clear here, inflation is already well over 2%. I know this. You know this. And I guarantee the Fed knows this.

So, what are these Fed officials yapping about?

The fact is that the Fed is terrified of debt deflation.

You’ve probably heard the word “deflation” mentioned at some point by financial pundits on business TV. Usually, it’s referred to in hushed tones as though it were some kind of unspeakable evil.

This is completely bogus.

Deflation is the process by which something falls in price. It is a perfectly normal development for a healthy economy. In fact, deflation is actually an intrinsic part of technological advancement (for instance, the cell phone you own today is both more sophisticated and cheaper than the original models from a decade ago).

DEBT deflation, on the other hand, is a completely different issue. And it absolutely terrifies Central Bankers like those running the Federal Reserve. 

Debt deflation is when the value of a bond begins to drop aggressively, making it more expensive to service (as bond prices FALL, bond yields RISE, making debt payments greater).

With the U.S. sporting a Debt to GDP ratio north of 130%, and on track to add another $3-$5 trillion in debt this year, debt deflation would trigger a systemic crisis worse than 2008.

So, the Fed needs to look for any excuse to continue intervening in the bond markets. And it is clear based on the statements coming out of the Fed, that it has decided that its “inflation target of 2%” is the excuse.

Basically, the Fed is going to continue printing money and buying bonds non-stop until its arbitrary inflation measures (the CPI, which the Fed KNOWS doesn’t accurately measure inflation) hits 2%. 

Then as soon as it finally hits 2%, the Fed will say it actually wants inflation to be 2.5%. And when it hits 2.5%, the Fed will say it wants inflation at 3%.

You get the general idea.

The Fed is effectively making up some fantasy “goal” that allows it to print money from now on.

This is the BIG PICTURE for the financial system. And it’s going to result in some of the most spectacular investment opportunities we’ve seen in decades.

On that note, we just published a Special Investment Report concerning FIVE secret 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. And it explains in very simply terms how to make inflation PAY YOU.

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

To pick up yours, swing by:

https://phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in It's a Bull Market | Comments Off on You Better Position Yourself For This Now, Because It’s Coming Soon!

Inflation Watch: The U.S. Has Spent $10 TRILLION in the Last 12 Months


Here’s a jaw dropping statistic for you…

If the Biden Administration’s Infrastructure Program is signed into law, the U.S. will have spent nearly $10 TRILLION in a single year.

Yes, Trillion with a “T”

This is:

1)    Equal to the GDPs of Japan, Germany and the U.K. combined.

2)    More than the U.S. has spent during the last FIVE recessions combined.

3)    More than the combined annual wages of all Americans.

That last one really gets me. If you add up all the money earned via wages by Americans in the 12 months, the U.S. Government has spent more money than that!  

And finally, the ultimate jaw dropper…

The U.S. government will have spent an amount roughly equal to 50% of its GDP… in a single year. 

And it’s going to unleash an inflationary storm.

Gold figured this out first, roaring to new all-time highs.

Then copper broke out.

And now it’s oil’s turn.

Indeed, the entire commodity complex has just ended a 15 years bear market.

The writing is clearly on the wall. Big Inflation is coming. And the Fed is not going to do anything to stop it.

In fact, the Fed has already stated explicitly that it has no plans to raise rates or taper its QE program until 2023!

Which means, inflation will rage out of control…

Many investors will get taken to the cleaners.

But some will rake in ENORMOUS potentially life-changing profits.

On that note, we just published a Special Investment Report concerning FIVE secret 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. And it explains in very simply terms how to make inflation PAY YOU.

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

To pick up yours, swing by:

https://phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in It's a Bull Market | Comments Off on Inflation Watch: The U.S. Has Spent $10 TRILLION in the Last 12 Months

How to Play the Coming Inflationary Blow Off Top


As I mentioned last week, the bears fumbled miserably in March. The door was there to slam stocks and they weren’t able to get the job done. 

With that in mind, stocks roared higher over the weekend breaking through the all-important 4,000 level on the S&P 500. 

Just as importantly, momentum is catching a bid with the two companies I’ve been monitoring (Tesla and Square) ripping higher to test overhead resistance.

If they can break above these lines, we will have confirmation that the tech massacre is over. At that point, hot money would begin to flow back into tech stocks. And with Tech comprising ~30% of the S&P 500, this would ignite a major rally higher.

This would lead to the eventual blow off top in inflationary assets I’ve been forecasting for the last few months. Remember, stocks LOVE inflation at first, but that love turns to hate.

During the last bout of hot inflation in the 1970s, stocks initially bubbled up before CRASHING nearly 50% in the span of two years, wiping out ALL of their initial gains and then some.

As I keep warning, inflation is going to ANNIHILATE investors’ portfolios.

Those who are properly prepared. however, will make literal fortunes.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research


Posted in It's a Bull Market | Comments Off on How to Play the Coming Inflationary Blow Off Top

The Bulls Fumbled the Ball Last Week, It’s About to Get UGLY


The trend has ended for stocks. We can now expect a lot of chop.

The bulls really fumbled last week. They not only had the Fed behind them (the Fed printed over $100 billion that week), it was also options expiration week, which is Wall Street’s favorite time to manipulate the markets to insure as many options expire worthless as possible.

Despite this, stocks closed DOWN for the week. The S&P 500’s chart was truly pathetic.

Even the Dow Jones industrials, which has been a clear market leader, failed to end the week up. You can see how this index failed took out support (red line) and then failed to reclaim it. In technical analysis terms, this means former support is now resistance. And it is very bearish.

The onus is now on the bulls. They need to step in right here, right now and push the market up in a big way. If they don’t the trend is dead and we’re in for a correction down to the 3,700s.

You’ve been warned.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in It's a Bull Market | Comments Off on The Bulls Fumbled the Ball Last Week, It’s About to Get UGLY

Warning: The Fed is About to Blow Up the Bond Market


Inflation expectations continue to soar.

The US 5-year Breakeven Rate just hit 2.6%. Granted I’m not a genius Fed official, but what does this image look like to you?

Remember, the Fed believes inflation won’t hit even 2% for three more years.

And then there’s the yield on the 10-Year US Treasury which is about to break its multi-decade downtrend for the second time since 1982.

By the way, the first break occurred when the Fed attempted to normalize monetary policy by raising rates and shrinking its balance sheet. THIS breakout is occurring while interest rates are at ZERO and the Fed is running a $125 billion per month QE program!

Those who believe that all this money printing and subsequent inflation it will unleash means stocks will forever go up need to brush up on their history.

Stocks love inflation at first, but that love quickly turns to hate. During the last bout of hot inflation in the 1970s, stocks initially bubbled up before CRASHING nearly 50% in the span of two years, wiping out ALL of their initial gains and then some.

As I keep warning, inflation is going to ANNIHILATE investors’ portfolios.

Those who are properly prepared. however, will make literal fortunes.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in It's a Bull Market | Comments Off on Warning: The Fed is About to Blow Up the Bond Market

The Dark Secret the Fed Wants to Keep Hidden


The Fed has already told us what is coming down the pike.

But no one is listening.

The Federal Reserve system employs roughly 20,000 people.  I believe it is the single largest employer of economists in the U.S. And as a result of this, it actually produces a decent amount of high-quality research.

The problem is that NO ONE at the top of the Fed listens to it!

Case in point, in 2001, researchers at the Federal Reserve bank of St Louis discovered that the Fed’s preferred measures of inflation are the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) were in fact useless at predicting future inflation.

At the time they wrote:

We see that past inflation in food prices has been a better forecaster of future inflation than has the popular core measure…Comparing the past year’s inflation in food prices to the prices of other components that comprise the PCEPI (as in Table 1), we find that the food component still ranks the best among them all 

Source: Federal Reserve bank of St Louis

Despite this discovery, the Fed continues to use CPI and PCE as its preferred measures of inflation. Put another way, despite the fact that the Fed’s OWN RESEARCHERS proves that CPI and PCE are garbage, the Fed keeps using them.

And if you think that’s bad, take a look at what the Fed discovered in NOVEMBER 2019 when it comes to printing money to service debt. 

A solution some countries with high levels of unsustainable debt have tried is printing money. In this scenario, the government borrows money by issuing bonds and then orders the central bank to buy those bonds by creating (printing) money. History has taught us, however, that this type of policy leads to extremely high rates of inflation (hyperinflation) and often ends in economic ruin. 

Source: Federal Reserve bank of St Louis

Yes, the Fed’s own research has found that printing money and using it to buy debt results in raging inflation and economic ruin.

Bear in mind, that the Fed has printed $3+ trillion over the last 12 months for this express reason… and intends to print $120 billion per month for the next TWO YEARS (another $2.8 trillion).

Those who believe that all this money printing and subsequent inflation it will unleash  means stocks will forever go up need to brush up on their history.

Stocks love inflation at first, but that love quickly turns to hate. During the last bout of hot inflation in the 1970s, stocks initially bubbled up before CRASHING nearly 50% in the span of two years, wiping out ALL of their initial gains and then some.

As I keep warning, inflation is going to ANNIHILATE investors’ portfolios.

Those who are properly prepared. however, will make literal fortunes.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in Central Bank Insanity | Comments Off on The Dark Secret the Fed Wants to Keep Hidden

Ignore the Bounce, the Stock Market is in SERIOUS Trouble


Stocks are bouncing hard this morning because China stepped in to prop up its stock market.

That’s it. That’s the only reason.

Put another way, the stock market is in very serious trouble. 

The bulls have made multiple attempts to keep the S&P 500 above its 50-day moving average (DMA). Despite all of their efforts, the S&P 500 still closed below the 50-DMA yesterday.

The longer-term picture isn’t much better. The S&P 500 has effectively traded sideways now for three months. Stocks have managed to move a lot without actually going anywhere!

Mind you, this is happening at a time when the Fed is pushing some $120 BILLION into the financial system every month. So, the market has managed to go nowhere despite the Fed putting nearly a quarter of a trillion dollars into the financial system ($120 billion for January and February each).

Now you understand why I say the markets are in serious trouble. It stocks can’t catch a bid despite this much money printing, something is VERY wrong.

That something is inflation.

Stocks love inflation at first, but that love quickly turns to hate. During the last bout of hot inflation in the 1970s, stocks initially bubbled up before CRASHING nearly 50% in the span of two years, wiping out ALL of their initial gains and then some.

As I keep warning, inflation is going to ANNIHILATE investors’ portfolios.

Those who are properly prepared. however, will make literal fortunes.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in stock collapse? | Comments Off on Ignore the Bounce, the Stock Market is in SERIOUS Trouble

These Are the Levels to Watch For Stocks

The bloodbath continues.

I warned for weeks that inflation was going to annihilate investors portfolios. And now it is.

The big question for most investors, is “when does it end?”

No one knows. But the market is offering us some clues.

Tesla (TSLA) was one of the hottest momentum stocks on the market going into this meltdown. It has sliced right through its 50-DMA and is now approaching its 200-DMA. Realistically, the 200-DMA is the first place we could see an actual bottom formed.

If the overall market were to follow TSLA, this would mean the S&P 500 dropping to roughly 3,500.

And the NASDAQ falling to 11,600 or so.

I know this is NOT what you wanted to hear. But the reality is that as awful as last week’s selling was, it didn’t induce any major flight to safety in bonds.

Historically, Treasuries are a safe haven, meaning that during times of trouble, capital runs to them for safety. However, last week this didn’t prove to be the case. The long-Treasury ETF (TLT) briefly spiked for a day or so, but then plunged back down to its lows.

Until you see TLT rallying hard, the odds of a market bottom remain extremely low. I wouldn’t get too excited about buying stocks until we see TLT trading near its 50-DMA at 148 or so.

Which means, buckle up, because the market is STILL in serious trouble.

Those who are properly prepared. however, will make literal fortunes.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in stock collapse? | Comments Off on These Are the Levels to Watch For Stocks

Warning: the Bloodbath is Far From Over


The bloodbath continues.

I warned for weeks that inflation was going to annihilate investors portfolios. And now it is.

The big question for most investors, is “when does it end?”

No one knows. But the market is offering us some clues.

Tesla (TSLA) was one of the hottest momentum stocks on the market going into this meltdown. It has sliced right through its 50-DMA and is now approaching its 200-DMA. Realistically, the 200-DMA is the first place we could see an actual bottom formed.

If the overall market were to follow TSLA, this would mean the S&P 500 dropping to roughly 3,500.

And the NASDAQ falling to 11,600 or so.

I know this is NOT what you wanted to hear. But the reality is that as awful as last week’s selling was, it didn’t induce any major flight to safety in bonds.

Historically, Treasuries are a safe haven, meaning that during times of trouble, capital runs to them for safety. However, last week this didn’t prove to be the case. The long-Treasury ETF (TLT) briefly spiked for a day or so, but then plunged back down to its lows.

Until you see TLT rallying hard, the odds of a market bottom remain extremely low. I wouldn’t get too excited about buying stocks until we see TLT trading near its 50-DMA at 148 or so.

Which means, buckle up, because the market is STILL in serious trouble.

Those who are properly prepared. however, will make literal fortunes.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research


Posted in stock collapse? | Comments Off on Warning: the Bloodbath is Far From Over

Warning: the Bond Market is Starting to Blow Up Again

The markets are at a crossroads.

We’ve had one major rally this week (Monday).

We’ve had one major drop this week (Tuesday).

The issue is which one was the real deal. Monday could easily have been the result of short-covering and “start of the month” buying by financial institutions.

Similarly, Tuesday could have been the markets dropping simply because China issued a warning that it believes U.S. stocks are “in a bubble.”

Honestly, it’s impossible to tell. The market is a bit of a mess. So, the best thing to do is wait and watch today as the markets will finally provide some clarity. One of the greatest trader’s adages is “when in doubt, stay out.” And that certainly rings true for the market this week.

For the S&P 500, the support is at 3,860, 3720, 3,640, and 3,550. If stocks take out this first line (3,850) on a closing basis, it opens a “trapdoor” to a nasty drop to the low 3,700s. This is a BIG reason not to be adding to longs this week.

Chart

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Similarly, if you are a stock market bear, you don’t want to ignore the strong uptrend stocks have established over the four months. We’ve had two “bear traps” during that time in which stocks broke down, violating the trendlines only to reverse and rally hard. I’ve identified those occasions with red circles in the chart below.

If you’re a bear, these are why you don’t want to bet on a big collapse right now: stocks could breakdown only to reverse and take you to the cleaners.

Diagram

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So again, the best strategy this week is to “watch and wait.” Let the market show you what is coming and then take action.

Bear in mind, we’re talking strictly about TODAY, as in right now. In the intermediate term, I remain extremely bearish.

Why?

Because inflation is blowing up the bond market. Bonds bounced a few days ago, but are once again rolling over and falling.

Put another way, the issue that blew up the stock market late last week has not been resolved. If anything, it’s about to get worse.

Which means stocks could very easily be a bloodbath in the coming weeks.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in Debt Bomb | Comments Off on Warning: the Bond Market is Starting to Blow Up Again

Jerome Powell is Lying and We Will All Pay For It

At this point in my career, few things surprise me.

I’ve seen the housing boom, the Great Financial Crisis, the E.U. debt crisis, bail-ins, bail-outs, Fed chairs lying to congress, BREXIT, and President Trump.

However, what Fed Chair Jerome Powell said this week made my jaw hit the floor.

In his testimony to Congress, Fed Chair Jerome Powell stated:

It may take three years for inflation to hit the Fed’s goal of 2%.

Three years, as in inflation won’t hit 2% until 2024.

Bear in mind, inflation, today, right now, is well over that. Bond yields which trade based on inflation have more than doubled since August.

Gasoline prices are up over 70% since November. Lumber prices are up 52% over the same time period. Copper is up 33%. Heck, the ENTIRE commodities complex as measured by the Commodity Research Bureau’s index is up 26%!

Chart, line chart, histogram

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There is no sign of this stopping. Indeed, as Bill King notes, on the very day in which Fed Chair Powell was making these insane claims, gasoline surged 2%, oil surged 2.5%, copper rallied 3% and bonds collapsed.

This is akin got the financial system SCREAMING “INFLATION IS HERE!” in Powell’s ear. And he claims we won’t even hit inflation of 2% until 2024.

This is total insanity. And it is going to end horribly.

During the last bout of hot inflation in the 1970s, stocks initially bubbled up before CRASHING nearly 50% in the span of two years, wiping out ALL of their initial gains and then some.

Chart, bar chart, histogram

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As I keep warning, inflation is going to ANNIHILATE investors’ portfolios.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in stock collapse? | Comments Off on Jerome Powell is Lying and We Will All Pay For It

Warning: A Bloodbath Could Be Just Around the Corner


The stock market is warning us that a real bloodbath could be around the corner.

Let’s take a look at some charts. 

The market action of the last week has been extremely problematic. On the surface things look relatively benign. The S&P 500 fell to test support and its 50-day moving average (DMA) and bounced hard.

All of this is just fine and no cause for major concern. But again, this is problematic because “under the hood” things have gotten downright nasty.

Tesla (TSLA) has been one of the most important market leaders for stocks since the March lows. It sliced through its 50-DMA with little to no trouble. Support held, but this was a very negative development and opens the door to a test of the 200-DMA.

It’s a similar story for TradeDesk (TTD) another market leader: support held, but we sliced through the 50-DMA like a hot knife through butter. Again, the door is now open to the 200-DMA.

These are market leaders. If they go to their 200-DMAs, the broader market will likely end up doing the same.

That’s a pretty significant drop.

Again, the market action of the last week is quite problematic. While the S&P 500 looks contained, market leaders have seen tremendous damage to their charts. With this in mind, the potential for a nasty drop is higher than at any point in the last six months. 

This all ties back to what I’ve been arguing for weeks now: that the inflationary forces rippling through the financial system will eventually HURT rather than help stocks. 

The reason for this is that the ONLY thing that allows stocks to remain in a bull market is if the debt markets are calm and stable.

They are not. The yield on the all-important 10-Year Treasury yield has more than doubled since August and is now on the verge of breaking its 40+ year downtrend.

This is a HUGE deal. The last time that downtrend broke was in 2018 and it resulted in the stock market losing 20% in a matter of weeks.

As I kept warning for weeks, the coming inflation is going to ANNIHILATE most investors’ portfolios.

On that note, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We are making just 100 copies available to the public.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in stock collapse? | Comments Off on Warning: A Bloodbath Could Be Just Around the Corner

The U.S. Will Print $7 TRILLION in the Next 24 Months


And the horrifying inflationary data points keep coming!

Over the last few weeks, we’ve outlined the following:

1.    If you add up all of the money the U.S. has ever printed… over 40% of it was printed in 2020 alone.

2.    In three months in 2020, the U.S. increased its deficit by more than it had during the past five recessions combined (’73, ’75, ’82, early ‘90s and Great Financial Crisis).

3.    Under Jerome Powell, the Fed bought more Treasuries in SIX WEEKS than it did in 10 years under Ben Bernanke and Janet Yellen.

4.    Agricultural commodities prices are up nearly 40% since August.

5.    The Commodity Research Bureau’s Index is up 75% since April.

These items alone are horrifying… and unfortunately for the world, there are a slew of new ones to add to the list.

  • Copper traded over $8,900 per tonne last week, hitting a 10-year high.
  • That same week, Nickel traded a $18,534 per tonne, a six-year high.
  • Lumber cleared $1,000 per 1,000 board feet, for the first time in history.

Best of all… the Fed claims that there are no signs of inflation!

Last week NY Fed President John Williams told CNBC that rising prices are due to “optimism” about the growing economy. He also claimed that inflation expectations are rising but that he sees no evidence that asset prices are “out of control.”

So the financial system is SCREAMING that inflation is already running hot, and the Fed is asleep at the wheel.

It’s only going to get worse.

As I keep stating, once inflation appears in the financial system, the only thing that can stop it is if the Fed begins to tighten monetary conditions much as Paul Volcker did in the late ’70s early ’80s.

Well, the Fed continues to print $120+ billion every single month… and has announced it won’t raise rates for another TWO YEARS!

Two years… as in 2022 to 2023.

Put another way, the Fed is going to be printing another $2.8 trillion ($1.4 trillion per year for two years) going forward. Between this and the Biden administration’s $1.9 trillion stimulus program, $2 trillion infrastructure program, and $1.7 trillion climate change program, we’re talking about ~$7 TRILLION being printed in the next two years’ time.

$7 trillion… an amount equal to 33% of US GDP.

The coming inflation is going to ANNIHILATE most investors’ portfolios.

Those who are properly prepared. however, will make literal fortunes.

The coming inflation is going to ANNIHILATE most investors’ portfolios.

On that note, we just published a Special Investment Report concerning FIVE secret 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. And it explains in very simply terms how to make inflation PAY YOU.

Today is the last day this report will be available to the public. We extended the deadline based on the weekend run in commodities, but this is it… no more extensions.

To pick up yours, swing by:

https://phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in It's a Bull Market | Comments Off on The U.S. Will Print $7 TRILLION in the Next 24 Months

Got Inflation? The Fed Just Printed Another $100+ BILLION This Week

Over the last few weeks, we’ve outlined some truly extraordinary facts pertaining to just how much money printing the Fed has performed.

As a brief recap:

1.    If you add up all of the money the U.S. has ever printed… over 40% of it was printed in 2020 alone.

2.    In three months in 2020, the U.S. increased its deficit by more than it had during the past five recessions combined (’73, ’75, ’82, early ‘90s and Great Financial Crisis).

3.    Under Jerome Powell, the Fed bought more Treasuries in SIX WEEKS than it did in 10 years under Ben Bernanke and Janet Yellen.

All of this money printing has ignited an inflationary storm. The Fed refuses to acknowledge this, but the reality is staring us all in the face.

Put simply inflation is ripping through the financial system.

And the craziest thing? The Fed just printed another $100 BILLION this week alone.

That’s not a typo. On February 20Th the Fed balance sheet was $7.442 trillion. This week, it’s $7.557 trillion. The Fed balance sheet is not only at a new all-time high, but it’s now the size of the economies of Japan and the United Kingdom, COMBINED.

This is absolute madness. The media is claiming over and over that the COVID-19 pandemic is now under control and things will start returning to normal, but the Fed’s still printing over $120 billion in money per month.

At this pace, the Fed will print $1.4 TRILLION this year alone. Not billion, TRILLION with a T.

And they show no signs of stopping.

The coming inflation is going to ANNIHILATE most investors’ portfolios.

On that note, we just published a Special Investment Report concerning FIVE secret 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. And it explains in very simply terms how to make inflation PAY YOU.

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

To pick up yours, swing by:

https://phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in It's a Bull Market | Comments Off on Got Inflation? The Fed Just Printed Another $100+ BILLION This Week

This Might Be the Most Horrifying Thing You Read All Day

We’ve been outlining some pretty extraordinary items on these pages over the last few weeks.

As a brief recap:

1.    If you add up all of the money the U.S. has ever printed… over 40% of it was printed in 2020 alone.

2.    In three months in 2020, the U.S. increased its deficit by more than it had during the past five recessions combined (’73, ’75, ’82, early ‘90s and Great Financial Crisis).

3.    Under Jerome Powell, the Fed bought more Treasuries in SIX WEEKS than it did in 10 years under Ben Bernanke and Janet Yellen.

4.    Agricultural commodities prices are up nearly 40% since August.

Well, buckle up, because today we’ve got a new astonishing fact…

The commodity index is up 75% since its April low, more than doubling the performance of stocks over the same time period.

Take a look at the above chart. Does this seem normal or healthy to you… that commodities, which are essentially inflation hedges, are more than DOUBLING the performance of stocks?

As I keep pounding the table, inflation has entered the financial system. And as we know from history, once inflation appears, nothing stops it except the Fed tightening monetary policy, by aggressively raising interest rates as Paul Volcker did in the late ‘70s early ‘80s.

However, the Fed is unwilling to even acknowledge that inflation is a problem right now.

Mary Daly, President of the San Francisco Fed said earlier this week that inflationary pressures are now “downward,” meaning inflation is disappearing. She also added it’s “not time to worry about inflation risks right now.” And that doing so would cost the economy jobs.

As if that wasn’t baffling enough, Boston Fed President Eric Rosengren commented yesterday that inflation is not likely to hit the Fed’s target until 2022. By the way, the Fed’s target is just 2%.

Real inflation is well north of this already. Year to date, agricultural commodities are up 6%, housing prices are up 8%, gasoline prices are up 34%, and lumber prices are up a whopping 37%.

And we have multiple Fed Presidents claiming that inflationary pressures are downward and that inflation won’t hit 2% until 2022!!

Folks, the Fed is asleep at the wheel and it’s going to allow inflation to rage out of control.

This is going to ANNIHILATE most investors’ portfolios.

Those who are properly prepared. however, will make literal fortunes.

On that note, we just published a Special Investment Report concerning FIVE secret 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. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 100 copies available to the public.

As I write this there are just 5 left.

To pick up yours, swing by:

https://phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in It's a Bull Market | Comments Off on This Might Be the Most Horrifying Thing You Read All Day

The U.S. is About to Set a Record… and It’s Not a Good One

The inflationary storm clouds continue to form on the horizon.

Yesterday I noted that the U.S. is printing money at an extraordinary pace.

How extraordinary?

The Fed alone will print $1.4 trillion in the next 12 months. This comes on the heels of the $3 TRILLION it has already printed in the last year.

The Fed is not alone here.

The Biden administration is pushing the “pedal to the metal” in terms of stimulus. It is about to pass a $1.9 trillion stimulus plan. Bloomberg notes that this will be the second largest injection of federal cash in U.S. history.  

The only one larger cash injection occurred was the first COVID-19 Stimulus plan (the CARES act) which was launched at the beginning of the pandemic.

We’re now on the tail end of the pandemic and we’re about to print another $1.9 trillion in stimulus. Bloomberg notes that the Biden administration wants to spend $2 trillion on climate change and $1.5 trillion on manufacturing and childcare.

These are staggering amounts of money. Never before in history has the U.S. printed this much money.

Add it all up and the U.S. will print an amount of money greater than the GDP of Japan, the third largest economy in the world.

All of this is going to unleash an inflationary storm.

Commodities have just broken out of a 10+ year bear market.

Gold was the first to figure this out.

Then Copper.

Now it’s Oil’s turn.

All of these charts are SCREAMING that inflation is coming. And as usual most investors are asleep at the wheel.


Those who are properly prepared. however, will make literal fortunes.

On that note, we just published a Special Investment Report concerning FIVE secret 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. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 100 copies available to the public.

As I write this there are just 5 left.

To pick up yours, swing by:

https://phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in Central Bank Insanity | Comments Off on The U.S. is About to Set a Record… and It’s Not a Good One

Warning: The Next Crisis is Just Around the Corner


Get ready for a staggering admission.

If you add up all of the money the U.S. has ever printed… over 40% of it was printed in 2020 alone.

That is not a typo.

Patrick Bet-David pointed this out and he’s right: if you add up all of the money the U.S. ever printed since its founding… over 40% of it was printed last year. 

Bear in mind, we’re talking about money printing, NOT issuing credit or loans (the mechanism through which most “money” enters the system today). So, we’re talking about actual cash that goes into the economy.

As I keep emphasizing, when it comes to monetary policy and financial insanity, this time IS different. The amount of money printing policymakers used to fight the COVID-19 pandemic was unprecedented. It was BEYOND crazy.

Just how insane was all this money printing?

Investing legend Stanley Druckenmiller recently noted:

1)    In three months in 2020, the U.S. increased its deficit by more than it had during the past five recessions combined (’73, ’75, ’82, early ‘90s and Great Financial Crisis).

2)    Under Jerome Powell, the Fed bought more Treasuries in SIX WEEKS than it did in 10 years under Ben Bernanke and Janet Yellen.

3)    Corporate borrowing, which usually drops during recessions actually INCREASED by $400 BILLION during the Covid-19 pandemic.

Again, this time IS different. And it’s going to unleash an inflationary storm that will annihilate portfolios and the real economy.

Indeed, the situation is so serious that former Treasury Secretary Larry Summers (no relation of mine) has stated that the Biden administration risks unleashing the worst inflation “in a generation.”

Bear in mind, Summers is a Democrat. So, he is not simply engaged in partisan politics here.

Again, an inflationary storm is coming. And it’s going to annihilate most investors.

Those who are properly prepared. however, will make literal fortunes.

On that note, we just published a Special Investment Report concerning FIVE secret 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. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 100 copies available to the public.

As I write this there are just 9 left.

To pick up yours, swing by:

https://phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in Inflation | Comments Off on Warning: The Next Crisis is Just Around the Corner

Why the Market is Going to New All Time Highs


As I forecast to clients in last week’s Private Wealth Advisory, stocks have bounced hard off the 50-day moving average.

The bounce consisted of a clear breakout from the downward channel formed by last week’s correction (blue lines). As I write this, stocks have been rejected at resistance (red line in the chart below) and are sitting just below their all-time highs.

I expect we’ll see that line of resistance broken shortly.

Why?

Because the market is returning to “business as usual.”

The primary concern for the stock market last week was whether or not Wall Street remained in control of the financial system. Put another way, would the Gamestop (GME) phenomenon through which thousands of individual investors intentionally pushed a stock higher to hurt a hedge fund, would become the norm.

With the regulators cracking down on the GME scheme, it is clear that Wall Street has won this round.

I’m NOT saying that I like this situation, I’m simply saying that it is clear that the individual investors will not end up winning this war (how can they with Wall Street having the regulators, government and entire system covering for them?).

Put simply, the craziness of GME is subsiding and the system appears to be returning to “business as usual.” This is what the large pools of capital were looking for in order to start buying again.

And buy they shall. After all, their compensations depend on it.

On that note, we just published a Special Investment Report concerning FIVE secret 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. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 100 copies available to the public.

As I write this 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

Posted in Inflation, It's a Bull Market | Comments Off on Why the Market is Going to New All Time Highs

How to Profit As Precious Metals Explode Higher

The next leg up for precious metals has arrived.

During major bull runs in precious metals, silver typically outperforms gold.

With that in mind, I like to use the silver to gold ratio as a means of measuring this. When silver outperforms gold, this line rises and when silver underperforms gold, this line rises falls.

As I write this Monday morning, silver is up 10% while gold is barely up 1%. And the silver to gold ratio will finally be breaking out of the consolidation range that has controlled price since August 2020 (blue lines in the chart below).

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The big picture here is even more astonishing.

 The silver to gold ratio has broken out of a 10-year downtrend. Looking at this, it is clear the next bull market in precious metals is officially here.

Chart, line chart

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I want to stress here that this is NOT just about the U.S. dollar getting weaker. Silver is breaking out to new highs priced in every major currency: Euros, Yen, and Francs.

This tells us that this is NOT just about the U.S. dollar losing value. This is a true bull market in which silver as an asset class has begun to rise globally.

Bear in mind, if you choose to invest in this sector, you need to ready to stomach some MAJOR volatility. It is not unusual for silver to rise or fall 5% in a single day, and silver miners can move double digits in hours.

So, if you’re interested in profiting from this, you HAVE to be willing to “buy and hold” and rise a roller coaster the whole way up.

Best Regards

On that note, we just published a Special Investment Report concerning FIVE secret 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. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 100 copies available to the public.

As I write this there are just 19 left.

To pick up yours, swing by:

https://phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in Inflation | Comments Off on How to Profit As Precious Metals Explode Higher

What Gamestop Means for the Broader Market


Stocks have entered a kind of speculative frenzy.

You’ve no doubt heard or read about Gamestop (GME) the bricks and mortar video game retailer.

The company has been in trouble for months, failing to turn a profit since 2018. And this is happening despite revenues growing.

Because of this, hedge funds have taken MASSIVE short positions in this company, borrowing shares from their brokers to bet that GME’s stock will collapse as the company lurches towards bankruptcy. 

How big were the bets against GME’s stock? Well over 100% of the company’s shares are currently being used by shorts.

Yes, short sellers can technically borrow more shares than actually exist. And that’s where the speculative frenzy comes in.

Individual traders,(not institutional traders or hedge funds),  who are big fans of GME’s business have launched a campaign to trigger a short squeeze in GME shares.

Remember how I said the short sellers had “borrowed” GME shares? Well, this means that they need to return those borrowed shares to their brokers at some point.

The only way to do this is by buying GME’s stock.

As a result of this, GME shares have gone from $20 to over $200 in pre-market trader today. And they’ve done this in the span of two weeks.

Let’s be clear here, this move has NOTHING to do with GME’s business. This is 100% manipulation being triggered by traders taking advantage of the shorts to ignite an explosive rally.

This tells us one thing…

That for the first time in more than two decades, individual investors are coming back into stocks.

The financial media likes to talk about stocks as though everyone on the planet owns them. It’s true that roughly half of American households have exposure to the stock market, but almost all of this exposure is based on indirect purchases via 401(k)s and other stock-based retirement accounts.

Rarely, if ever, do individual Americans open brokerage accounts and start buying stocks directly.

The last time they did was at the height of the Tech Bubble – the largest stock market bubble in history. A bubble driven by loose money from the Fed and a technology revolution. A bubble that saw individual stocks rising by 25% or even 50% in a single day.

Much like what GME is doing today.

That was the kind of bubble that required individual Americans to get “stock crazy” to the point of opening individual brokerage accounts to start day trading. At the height of the Tech Bubble, a little over one in five Americans were doing this.

And we’re about to see another similar episode.

Yes, this is a bubble and yes it will burst. But for now, it remains intact. 

With that in mind, we’ve just published an investment report titled Triple Your Money With the Mother of All Bubbles.

It outlines what the Fed is doing, why it’s doing it, and a unique investment that could easily triple as the Fed unleashes a tsunami of liquidity pushing stocks to nosebleed levels.

The last time the Fed began an easing cycle, this investment rose over 1,439%. And this time around we could see similar gains.

To pick up your copy of Triple Your Money With the Mother of All Bubbles go to:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted in Meltup | Comments Off on What Gamestop Means for the Broader Market