I’m calling their bluff, and I’m putting my money where my mouth is.
Time and time again, the Federal Reserve has lied to us about their intentions to raise interest rates. Each time is an exercise in molding investors’ expectations in order to summon a rise in the stock market once the next Fed meeting comes and goes with no hike.
But we caught on very early here at Wall Street Informer, and we’ve used a simple trick to profit every single time. Here’s the no-brainer that could make YOU easy profits…
The Federal Reserve, led my chairwoman Janet Yellen, meets today and tomorrow as part of their regular schedule during the year. And once again a long hard look at raising rates is promised to be discussed.
What I want to know is, are investors catching on?
Sure, interest rates need to be raised in order to combat a recession, which is on its way. But there’s virtually ZERO chance that the Fed raises rates before the election.
Why? Because they want to keep a Democrat in office, and a rate hike has a chance to cause significant damage to the market…the kind of damage that could push on-the-fence voters to Trump’s side.
That’s why this rollercoaster ride should be starting to feel very familiar…
1. The Fed says they are likely/very likely/strongly considering raising interest rates at the next meeting.
2. The market reacts by dipping as it prices in a hike.
3. The Fed meets and decides now is not the right time to hike.
4. The market surges.
I actually have to give the Fed credit; they’ve been able to manipulate the market with relative ease.
But artificially pumping up stocks in order to keep a Democrat in office (and pushing off the inevitable cycle of the market) is nothing to be commended for.
Either way, I plan on hitting the same no-brainer trade that I’ve been profiting from all year long when the above scenario takes place. And it all comes down to gold…
The precious metal is particularly sensitive to interest rates – a rise would surely stomp them downward, but that also means that another whiff on a chance to raise rates should breath air into the price of gold.
Like I said, I’m putting my money where my mouth is, and I’ll be telling subscribers of Midas Wave Alerts exactly what I’m doing…
