For the longest time now, everybody and their brother has cursed the Fed for essentially taking the “free” out of “free markets.” And there’s nothing that makes us, as investors, more uncertain or uncomfortable. Right?!
We know the Fed’s interference has changed the game … but what the hell are we supposed to do about it (especially now that they’re raising rates)?!
Many of the experts we’re bringing to our annual Irrational Economic Summit this year have strong opinions about the Fed. And it’s well worth your time to hear what they have to say.
As I see it…
The Fed is to blame for the next financial crisis (whatever shape that may take, and whenever it should finally appear).
But, instead of crying about it, I’m more concernrned with profiting off the Fed’s intervention.
You see, you essentially have two choices heading into the next global financial crisis…
You could do exactly what you did ahead of the last global financial crisis in 2008.
Or, you can arm yourself with a far-superior survival strategy… a strategy I’ll be discussing in detail at next week’s conference in Nashville.
Mind you… I don’t actually know what you did ahead of 2008. And I don’t know exactly how you fared through that confusing, tumultuous period.
But I know what a majority of “typical” investors did… and I know that if they had used my survival strategy… well, they’d be a lot richer (and happier) today.
Let me show you what I mean…
I want to share a chart that shows the power of the “survival strategy” I’m talking about.
And then I’ll explain how this strategy exploits a Fed-driven phenomenon.
Here’s the chart…
A $10,000 investment in the S&P 500, made in January 2005, is now worth about $23,400 – a total returnrn of 134%.
Meanwhile, a $10,000 investment in my “survival strategy” is now worth around $1,751,000 – a total returnrn of more than 17,000%!
Which would you rather have?
It’s a pretty obvious choice, I think!
Clearly, my survival strategy is able to “weather the storm” better than a passive investment in the stock market… and clearly it’s able to generate far stronger returnrns, capitalizing on the boom-and-bust nature of today’s markets.
And that’s all thanks to the Fed (not despite them)!
You see, the Fed is now on a course of raising interest rates. And they’re doing it while almost every other central bank in the world is lowering interest rates.
This is precisely the “central bank policy divergence” that I began speaking about at our Irrational Economic Summit in 2014. I knew the day would come… and now that day is here!
What’s more, I knew back in 2014 that this divergence in global monetary policy would likely have two effects.
It would confuse the snot out of people, for one. And it would set stock markets around the world on divergent paths – creating a wide spread between the “big winners” and “big losers.”
It took a while for this theme to fully develop. But consider where we are today…
Over the last quarter, the best-performing stock market in the world is up 26%. And the worst-performing stock market is up just 0.4%. That’s a fairly large spread, at more than 25%.
The spread between top- and bottom-performing global stock markets is being driven by the divergent policy actions of central banks around the world. And my research shows this metric is a predictive indicator for how “risk-on” and “risk-off” markets will perform.
This is what I was talking about in my Irrational Economic Summit speeches since 2014. And this is why I think you should consider a “survival strategy” approach ahead of the next financial crisis.
I’ll be covering the ins-and-outs of my strategy during this year’s conference. As far as I know, it’s the only strategy that’s able to capitalize on central bank shenanigans. And so far this year, we’re up more than 40% in live trading.
I’m sure there will be plenty of “single-finger salutes” thrown the Fed’s way at our Irrational Economic Summit.
And while that’ll be a lot of fun… I want to make sure you’re prepared to profit off the Fed, too!
Editor, Cycle 9 Alert
Follow me on Twitter @InvestWithAdam