On the eleven occasions the Fed has raised interest rates since March 2022…
Traders following our recommendations had the opportunity to lock in 75% profits in the next trading session thanks to high-volume trades by large institutions. But if you missed the big profits, you can prepare and profit from the 12th hike on November 1, 2023.
Here’s some material to work with ahead of your next trading session:
- A recent Reuters Poll shows 80% of analysts expect the U.S. dollar to remain triumphant for the rest of the year. This suggests inflation is cooling, except…
- New data from the U.S. services sector confirms businesses are paying higher prices for inputs. In other words, the pressure for inflation is alive and well…
- And I won’t be surprised if Fed Chief Jay Powell announces another 0.25% hike during the next FOMC meeting, held on October 31st – November 1, 2023.
Interest rate hikes can put good money in your pocket if you know how to leverage the upsides of massively undervalued companies trading at a heavy discount.
But a twelfth interest rate hike is just one piece of a much larger story I discussed with my clients yesterday. If you’ve been keeping up in recent weeks, you know the markets have suffered some significant pullback, and it’s not hard to see why.
- Europe is suffering stagflation.
- Oil prices are on the rise again.
- And demand in China is sucking wind.
In other words, the U.S. economy is being forced to carry the entire global economy.
This would’ve been easier ten years ago, but after two years of Bidenomics, I don’t see an easy way out. Despite media gyration, the Fed hasn’t reached its 2% target for inflation.
And the fact that experts discount the possibility of a 12th rate hike this year is hilarious because Fed Chief Jerome Powell doesn’t want to repeat Volcker’s mistake in the 80s.
The policy mistake that the Volcker Fed made in 1980 resulted in a more prolonged period of high inflation that required even tighter monetary policy, which then resulted in the most severe U.S. recession since the Second World War up to that time.
There are many parallels between today’s situation and what happened then. And as you might guess, Powell doesn’t want to be the guy who plunged America into a recession.
In other words, the chances of a 12th hike during the next FOMC meeting [Oct. 31 – Nov. 1] are pretty high. But if you’re well-prepared with even just one low-risk, high-reward position, you can protect and grow your money as the Fed’s hiking campaign continues.
See how we structure our trades for substantial gains in the remainder of 2023.