The Fed Is Losing Control Of The System
Phoenix Capital Research | Jun 16, 2016 08:39AM ET
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.
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.
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.
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