There’s millions of dollars in the stock market that’s been bubbling up to the surface… it’s just about ready to explode once a single call is made.
There’s so much pressure behind all this money. Once it’s released, anyone who knows what to do will be presented with never-before-seen riches.
I like to call it the ‘Fed trade’ because it all comes down to one deciding factor within the Federal Reserve…
Trust me when I say you’re not going to want to miss out on this ‘Fed trade’ that’ll unlock these hidden riches.
This trade will show you once and for all that there’s still millions to be made in this bull market…
Current Federal Reserve Chairwoman Janet Yellen has recently been inching interest rates up after years of dormancy which followed the global financial crisis of 2008.
Each time these rates have been implemented, the stock market has taken a slight breather from the inexhaustible rally we’ve been witnessing since November 2016.
The small rate hikes haven’t had any permanent damage on the market, but they’ve temporarily slowed it down on occasions.
The minutes from the most recent Federal Reserve meetings tell us that Yellen and her team will continue their hawkish ways over the next few months and continue to bump interest rates higher and higher.
Most people would argue she’s making up for all the lost hikes between 2009 and 2015.
As the stock market continues to climb, it can be expected that these future hikes will have similar effects on the market.
But something very interesting is going to happen in February 2018 that might just open up your opportunity to get in on some hidden stock market riches…
Yellen was appointed a 4-year term in 2014 and only 2 chairmen have failed to attain a second term since 1934…
But Trump hasn’t been the most approving of Yellen—especially back on his campaign trail.
Could Yellen become only the third Fed leader to not receive a second term in the past 80+ years?
If she doesn’t get her second term, we could be in for some hidden stock market riches…
The most likely candidate to replace Yellen is Jerome Powell.
If Trump taps Powell to lead the Fed, he’d be the first investment banker in that position…
As we’ve seen in the past, investment bankers prefer a much looser monetary policy than economists like Yellen do.
And although Powell, if elected, would not stop hikes altogether, he’ll more than likely slow them down due to his preference of a freer flowing monetary system.
Not to mention his current assets lie somewhere between $21 million and $61 million.
I’m sure you’re starting to see where I’m going with this.
Yellen gets her second term – rate hikes keep coming
Powell gets selected – rate hikes slow down
If rate hikes slow down, the stock market will most likely see an even stronger rally than the one we’ve been witnessing recently.
This will be the short-term outcome at least, and if that does happen, and Powell is selected, you can be sure I’ll be putting my money on a 3x leveraged market ETF like the Direxion Daily S&P 500 Bull 3x Shares ETF (SPXL).
If all these stars align, that’s exactly where we’ll find the ‘Fed trade’ that unlocks the hidden market riches I’ve been talking about.
Keep your eyes on the Fed.
