👽 May the 4th be with Disney investors. Q1 earnings reveal the Force of the bottom line.See Disney Data

The Fed Is Losing Control Of The System

Published 06/16/2016, 08:39 AM

The Fed is losing control of the markets.

Yesterday the Fed failed to raise rates… again.

It also lowered its rate hike forecast to just one rate hike this year (down from two) and possibly three rate hikes next year (down from four).

Despite these dovish developments, stocks cratered.

SPX 1 Min Chart

We may have reached the point at which the Fed has lost all credibility.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades. And thanks to careful risk management we’ve seen triple digit returns on invested capital every year since inception.

The market is beginning to realize that the Fed is out of options. The Fed waited too long to hike rates. And now it is hiking rates into an inflationary recession.

Indeed, core inflation has now been above the Fed’s target of 2% for five months.

Meanwhile, numerous data points are screaming “RECESSION.”

In short, the Fed is trapped. It cannot hike rates without crushing the economy further… but every month it waits to hike inflation continues to spiral out of control.

The time to prepare for this bubble to burst is now. Imagine if you’d prepared for the 2008 Crash back in late 2007? We did, and our clients made triple digit returns when the markets imploded.

We’re currently preparing for a similar situation today.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

This brings our winning trade streak to 85 straight winning trades.

Indeed, we haven’t closed a single loser since November 2014.

85 straight winners… and not one closed loser… in 18 months.

However, I cannot maintain this kind of track record with thousands of investors following our recommendations.

Which stock should you buy in your very next trade?

AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?

Unlock ProPicks AI

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.