As our report on the 12 Ways to Protect and Grow Your Wealth Today makes clear, U.S. markets are poised for a historical melt-down.
However, we track current signals not just long-term macros.
Today we are seeing increasing signs of a pre-crash melt-up for 2019, as we wrote in our previous post, Think Like a Bear, Trade Like a Bull.
In the coming days, you’ll see more evidence of this money-making “fat pitch.”
Toward that end, we wanted to share a few key thoughts to help you hit a homerun.
With hundreds of genuine signals out there, we track those of the utmost importance at Critical Signals Report to keep investors aware of all weather patterns, both near and long term.
We’ve also disclosed that in this setting of thoroughly distorted markets the #1 market indicator today is the Fed itself.
Simply stated, Fed engineering is more powerful today than any other time in market history.
Fed Manipulations Make for a Possibly Huge Win-Win
If our central bank chooses to keep rates low or “pause” rate hikes as per the Powell Pivot in March, the market rise we’ve seen in Q1 will continue and the market-debt party will rage on in the near term.
Such Fed support may not be natural capitalism at work, but as the saying goes: “Don’t fight the Fed.”
They are handing us another period of rising markets-i.e. that fat pitch right over home plate.
This chart below shows that the U.S. bond market is growing more confident as long as the Fed will cut rates or at least keep rates as low as they are now for 2019.
Specifically, the futures market is pricing in a full quarter-point cut this year, betting on the Fed seeing “prevention” as the best medicine – an echo of its policy prescriptions from two decades ago.
Of course, we at Critical Signals Report know that such “medicine” is ultimately a long-term poison, but we also know that markets will trend up on such interest rate “moderation” for the near term.
Honestly, we can’t help but laugh, as the excuse officials are using for this “sudden” low rate support is “weak inflation” and a “global slowdown.”
As our prior free report on true inflation shows, the Fed has been intentionally misreporting weak inflation for years.
In fact, real inflation is much higher than actually reported.
The Fed knows this.
And as for the global slowdown, that has also been happening for a long time.
In short, such pretexts for more “stimulus” are just smoke and mirror excuses to support a rising market critical to keeping Washington and Wall Street alive.
But regardless of how bogus such excuses are, they nevertheless help us see that the Fed will use these fictions to support rising markets in the near-term.
Again, and for now, the Fed is the key market signal, and they are signaling a rising market.
We can’t ignore this new bullish, fat pitch they are lobbing to investors.
Stick with Critical Signals Report to help you navigate this melt-up today, and the meltdown to come.
We are here to signal when it’s safe to swing away, before these market highs fall away.
Again, more on this big melt-up in the coming days.
In the interim, and as always, stay informed, stay smart, and be careful out there.
6 responses to “What You Need to Know for the Coming “Market Melt-Up””
May 01 2019