Everyone is Talking About the Wrong Central Bank and the Wrong Rate Hike

IMG Auteur
Published : March 14th, 2017
442 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

The Fed meets this week on Tuesday and Wednesday.

The market believes that there is an 86% chance the Fed will be hiking rates during this meeting. The Fed has been broadcasting this for a month straight. It is possibly THE most expected rate hike in years. The consensus is that we will see a 0.25% rate hike bringing the Federal Funds Target rate to 0.75%-1.00%.

BORING.

No one makes money by trading the most expected thing. With that in mind, what the Fed does or doesn’t do is largely irrelevant as far as I’m concerned.

The far more important development for the markets comes from the ECB,which revealed that it discussed a “rate hike” before the end of QE during its meeting last week.

Bear in mind, this is the ECB… which has cut rates into NEGATIVE four times; the same Central Bank that is currently engaged in a €60 billion per month QE program.

And it is talking about RAISING RATES.

THIS is something few in the markets are anticipating. And it has set the stage for a RAGING Euro rally (and $USD Collapse).

The Euro comprises 56% of the basket of currencies against which the $USD trades. So if the Euro begins to rally based on the ECB tightening, the $USD will drop hard. You can see the two currencies “mirroring” one another in the chart below. You can also see the Euro bottoming out and preparing to rally hard.

THIS is the big issue for the markets this week: not a completely expected Fed rate hike, but a completely UNEXPECTED potential rate hike from the ECB.

The market is not ready for this. And it's going to cause an "event" for many asset classes.

According to fund managers, being long the $USD is the single most popular trade in the world right now.

So what do you think will happen when these investors are caught on the wrong side of this trade as the Euro erupts and the $USD plunges… particularly since stocks have been tracking the $USD closely since early February?

These charts are warning that the market is susceptible to a sharp correction at best and possibly even a meltdown.

On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

We are giving away just 99 copies of this report for FREE to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/stock...arketcrash.html

Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
State of Failure
11 AprThe Recusant1
My, my...James's article almost sounds as if Trump himself might have gassed the people as a deflection and not Syria at all! Why...why...that's co...
State of Failure
09 AprGypsy
The STOCK MARKET trend has been DOWN. In fact, the word after Friday's Crash was "Standby for Monday." In a Moment of Severe Stress, the so-calle...
Flat-Earther FINALLY Launches Himself Into The Air, Crashes, Goes T...
05 Aprsirqitous
Seen realistically, however, this was money well spent for TPTB, even if they never get that loan repaid! As free advertising for the MSM cover st...
Flat-Earther FINALLY Launches Himself Into The Air, Crashes, Goes T...
03 Aprprljr
The really really really really unfortunate thing is that there are people and i use that word "people" lightly, are for no other explanation that ...
Flat-Earther FINALLY Launches Himself Into The Air, Crashes, Goes T...
28 Marprblmsolved
The really unfortunate thing about this story; For that kind of money he probably could have hired someone with access to a modern performance ...
East Continues Stacking Gold While The West Stacks Paper Illusions
24 Marprljr
If a countries cartel owned private Central Bank acquires the Gold with cartels bank money for the country it supposedly represents who actually ow...
Russia Did It!
23 Marprljr3
I have not trusted whatever the US government has reported,said,demanded since 911. The government ignored the laws of physics in explaining pretty...
Russia Did It!
23 Markevthorne4
One of the most sensible, level-headed articles I've read on this subject for a long time.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS