I landed recently in Paris only to see the Notre Dame Cathedral burning in flames, a deeply sad event as the larger European Union itself slides slowly into a recession lead by France’s neighbor Italy.
Notre Dame will eventually rise from these tragic ashes, and for this I am pleased at a deeply personal level.
This extraordinary cathedral means many things to countless individuals around the world, not just in France.
As I left Paris for my home in the South, I reflected that Notre Dame was also the sight of another infamous Franco-Italian moment.
In that very cathedral, the Corsican-born Napoleon Bonaparte crowned himself emperor of France, and just about everywhere else in continental Europe in 1804…
And as I thought about Napoleon complexities-or at least complexes-I couldn’t help comparing his extraordinary arrogance and geographical reach to the equally self-proclaimed “emperor” of the so-called “free markets”.
Since 2008, the supreme power behind American markets is our very own Federal Reserve.
The Emperor Federal Reserve Can’t Bail Out America Any Longer
I’ve shown elsewhere how the Fed’s response to the Great Recession of 2008 changed the entire map of national and global markets.
In the wake of that seminal event, the Federal Reserve, rather than normal market pricing, now determines the direction of our sadly distorted and fully “conquered” stock and bond markets.
But if you want to know how this happened and where the Fed (and thus your portfolios) are marching next, you need to understand the key attributes of the Fed’s very own Napoleon Complex.
Tomorrow, I’ll share how this central bank rose to such prominence, and why, like Napoleon, it (and the markets over which it rules) will fall to an equally historical nadir.
Most importantly, I’ll reveal the best ways to track the Fed’s own market signals and give you three simple reasons not to follow the Fed toward its own pending disaster.
Keep an eye out for this special report I’ll release tomorrow.
In the interim, get informed, stay safe, and be profitable out there.
April 18 2019