Gerardo Del Real,
Editor
Jan. 27, 2022
The Fed has spoken. And stuttered, stumbled, and double talked.
Don’t worry markets, Jerome is on the case… making sure that the inflation he didn’t see coming – and then labeled as transitory – is under control.
So what comes next? I’ll risk making a fool of myself and do the crystal ball thing for you.
If the Fed does raise rates – and I believe it will try to raise twice this year before doing an about-face again – the overall indices will throw a fit that will make the recent 1,200 point swings in the Dow seem mild.
I also believe if the Fed raises rates… rates will actually come down.
That means expect volatility for at least this quarter and possibly the next one.
Either way, buckle up. Jerome and team transitory are going to get the next two steps about as right as he and his squad got the inflation prediction right.
Expect volatility. If you have exposure to the overall indices through a 401k, retirement account, etc, you may want to lighten up the equity exposure.
The economy is slowing at the exact same time that Jerome is going to try and tighten. It’ll be a fun March if that happens.
What to do? Buy Gold
Get some gold and increase your gold exposure because I suspect over the next quarter or two gold breaks through that $2,000 level convincingly as everyone – institutions, retail, central banks – that shuns gold now will do the same about-face Jerome will do when the market reminds him who’s in charge.
In the longer term – next year to three years – the overall indices will continue to soar. Bitcoin will come back in favor, and the dollar will make a u-turn from its recent highs.
But for now, there are a few easy ways to make money….
Buy gold. Increase gold equity exposure and if you’re an accredited investor, use the network Nick and I have developed over the years to access some of the best-accredited deals on the planet.
In the next day or two, I’ll be providing Junior Resource Insider members access to one of the best deals – on a risk-reward basis – that I’ve ever participated in.
World-class asset, stellar team, metals I like – palladium, platinum, gold, rhodium, nickel – and early-stage (pre-IPO) with some very influential shareholders participating and supporting the stock.
I will personally be participating. Members of Junior Resource Insider can expect the deal in their inboxes over the next few days.
Become a member of Junior Resource Insider now to participate.
Make money from the volatility. Or not.
It’s going to happen either way.