Gains Pains & Capital

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

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

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 20^Th 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

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