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
Graham Summers is Chief Market Strategist for Phoenix Capital Investment Research, an independent financial research firm based in Charlottesville VA with clients in 56 countries around the world.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Fed Is Confused about What Drives Inflation
18 Octneville
Hi Frank, Thanks for your article.......The fact of the matter is that LIES LIKE EVERYTHING ELSE DRIVES INFLATION , which as it so happens is 'THE'...
What kind of person runs for public office ?
17 OctThemis1
I liked the use of the self-actualization chart within the context of politicians and their motives. It probably applies to many in Hollywood as w...
The Silliness of the Bretton Woods Years
16 OctThe Recusant
KUDOS! The book is anti-gold slanted throughout and subtly mocks those that value gold as seen in that silly Las Vegas Golden Rooster tale. As I pr...
The Future (Not)
14 OctS W.-1
I have it on good authority that the Aliens living in Antarctica have discovered a way of turning Ice into Oil. All we have to do to secure ou...
Betrayal!
09 OctThemis1
I agree 100% with all the points you made. You have summarized my own anger and the reasons for it. My only consolation is that I believe the eli...
A silver price-suppression theory gets debunked
07 OctDoom-1
I think he linked the wrong article, because there's minimal facts and logic there relevant to price suppression. It's a shame, because I really wo...
Light It Up
07 OctThemis
I keep wondering whether the US is fermenting a war with North Korea so as to indirectly draw China in and delay implementation of the yuan-for-oil...
One Nation Under Gold (2017), by James Ledbetter
05 OctThe Recusant1
Sadly, I too hoped for a more even-handed assessment of gold in our economic history. The book IS biased and by the time I got to the 20th century ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS