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The Fed Screwed Up… and the Markets Know It

Forecasts / Stock Markets 2018 Jun 19, 2018 - 04:09 PM GMT

By: Graham_Summers

Forecasts

Last week the Fed announced it intends to hike rates another two times this year, with three more hikes next year. The Fed also announced that it will continue to increase its QT program with the goal of eventually withdrawing $50 billion in liquidity per month, or some $600 billion per year.

The market didn’t like this announcement, with stocks in a sea of red. This has raised the question… “is the Fed going to trigger a market meltdown?”


How you answer that depends on who you ask. If you ask an investor in many of the emerging markets, the answer is… “The Fed already has.” The Emerging Market ETF is down 15% from its recent peak, while other specific emerging markets such as Brazil are down 20% year to date.

All of this can be squarely set on the Fed’s shoulders. Both the ECB and the BoJ are tapering their QE programs. The former will end its QE program in December, the latter… who knows? The point is, both are easing, while the Fed is hiking rates 3-4 times per year AND withdrawing liquidity to the tune of $30 billion per month.

My point is that while most Central Banks are easing, the Fed is TIGHTENING as if it’s dealing with runaway inflation. This is forcing the US Dollar higher which in turn is putting the highly $USD leveraged system under duress.

If the Fed doesn’t figure this out soon, we could very well see the carnage of the Emerging Markets space spread into the S&P 500. I remain VERY bullish in the intermediate term, but the Fed could make things NASTY in the short-term if it doesn’t fix this,

On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

We’ve extended our offer to download this report FREE by one week. But this week is the last time this report will be available to the general public.

To pick up one of the last remaining copies…

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

Graham Summers

Phoenix Capital Research

http://www.phoenixcapitalmarketing.com

Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and unde74rvalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.

Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.

© 2018 Copyright Graham Summers - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Graham Summers Archive

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