Well, the Fed did as expected and held steady on interest rates in this week’s meeting.
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But the markets were shook up considerably by what accompanied that “no announcement” — the dot plot revealing the latest predictions of the monetary mystics on the FOMC board.
In short, that plot showed that the majority of committee members expect another rate hike this year, and then for rates to remain in the now-infamous “higher for longer” zone. More specifically, their median estimate for the fed funds rate at the end of next year rose from 4.6% to 5.1%.
Of course, if you’ve watched a lick of the news broadcasts or read a word of the Wall Street Journal, you know all this.
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What’s important for you and every serious investor is what’s behind the scenes — what the Fed and the markets are actually going to do over the coming months, regardless of what they’re saying now.
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Interestingly, the Fed probably doesn’t need to do anything except run their mouths, because the markets have already tightened for them.
As New Orleans Conference alum (and valued presenter this year) Peter Boockvar just noted, “I will say this about the prospect of another Fed rate hike, all of a sudden the long end of the yield curve is doing it for them and by almost 50 bps since the July FOMC meeting. The 10-year yield has risen now by 43 bps since that July get together.”
Another of this year’s New Orleans Conference speakers, Jim Iuorio, put it in perspective in his inimitable style: “(The) Fed has a very poor history of predicting what they are going to do in any time frame more than a few weeks out…I have little interest in what they think they are going to be doing in 2024.”
To me, the take-away from the market mayhem over the last couple of days is that this, too, shall pass. Very soon, the markets — especially bonds and gold — will once again start pricing in the peak of this rate-hike cycle, and the potential for a pivot in the relatively near future.
That means gold, which has weathered the rise in Treasury yields quite well, will begin rebounding from the summer doldrums.
I know that Peter and Jim agree with me on this.
Of course, this reminds me that both of the gentlemen I just quoted are famed contrarians, with Peter being the smartest guy appearing on CNBC, and Jim (having departed CNBC on what I guess was a mutual agreement) now providing his valuable insights on Fox Business.
They’re known for being very frank...but they most assuredly don’t hold their tongues when they’re presenting in New Orleans.
That’s why I put them — along with two other outspoken big-thinkers in Lyn Alden and Dave Collum — on this year’s “Booms, Busts & Bubbles” panel, moderated by sharp-witted Albert Lu.
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Take my word for it...this will be one of the most entertaining, absolutely scintillating and enlightening panels you’ll ever witness.
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I’m going to be on the edge of my seat watching this event — and I hope you’ll be joining me in the audience.
Because our Booms, Busts and Bubbles panel, as great as it will be, is just one of the many blockbuster panels and presentations featured in this year’s New Orleans Conference.
From November 1-4, you’ll also enjoy our Mining Share Panel (with Rick Rule, Brent Cook, Tavi Costa, Jeff Phillips, Gwen Preston and myself)...our Precious Metals Panel (with “Economic Ninja,” Omar Ayales, Rich Checken, Dana Samuelson and Keith Weiner)...our Economy Panel (with Jeff Hirsch, Adrian Day, Brent Johnson, Peter Schiff and Mark Skousen)...
...Our Future of Money panel (with Adam Taggart, Danielle DiMartino Booth, Russell Gray and James Rickards)...and our Geopolitical panel (with Matt Taibbi, Konstantin Kisin, Dominic Frisby and Gary Alexander)...plus dozens of today’s top experts in every sector.
Combined, these experts will bring you light years beyond what you’re getting from the mainstream financial media.
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I know you’ll agree. But remember, if you don’t feel this year’s New Orleans Conference was worth every penny, just let us know and we’ll refund your entire registration fee.
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That’s how confident I am that you’ll find this one of the most valuable and important investment events you’ve ever attended.
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I want to remind you that our room block in the Hilton Riverside, our convenient host hotel, will be closing well in advance of this year’s New Orleans Conference. The Hilton has told us they will not be able to extend the block, so you’ll need to act soon if you hope to get in.
By registering now, you’ll save a full $400 from the on-site registration fee, but this price will also rise well beforehand.
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So to save big and make sure you get in our host hotel, you’ll need to register now.
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You know this year’s New Orleans Conference is going to be a load of fun and absolutely invaluable. In fact, if you’re a serious investor, I don’t see how you could afford to miss it.
So CLICK HERE to see this year’s entire “Dream Team” line up of speakers and reserve your place.
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Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference
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CLICK HERE
To Secure Your Spot At
New Orleans ’23
And Save Up To $400!
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