More market turmoil directly ahead…
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Stocks, bonds, commodities — every asset class is being tossed to and fro by the Fed’s relentless rate hikes.
But two reports due out shortly will change everything — and there’s one key way we can prepare.
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The markets are still reeling from the recent stunning volatility.
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For a few months now, I’ve been talking about how there was no sign of capitulation from investors, and how they were still rushing right back into the market after every big sell-off.
Despite every indication from Jerome Powell and his Federal Reserve compadres, the belief in a “Fed put” still persisted.
Well, reality began to bite over the last couple of weeks. Consider what investors have been subjected to over the last two weeks:
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If there’s any consolation for gold bugs, it’s that the yellow metal has significantly outperformed the stock market by losing less. Note, however, how symmetrical gold’s drop has been with the Dollar Index’s gain.
Wonder if there are any algorithms in play?
But here’s why I’m writing you today: Traders, algorithms and anyone invested in the current consensus view are about to be thrown for a loop in the weeks just ahead...
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Two Reports That Are Going To Shock The Markets
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The fact is, government statisticians are about to release two separate reports that will shatter the consensus view and the Fed’s hopes of quelling inflation.
The first: The nonfarm payrolls report for September, released on October 7 (next Friday).
The one factor that government apologists have been pointing to when arguing that the U.S. economy is not in a recession is the still-strong jobs market. The unemployment rate has remained historically low and there’s a long line of jobs waiting for someone...anyone...to fill them.
Since last month’s August jobs report, however, we’ve seen dozens of big employers — Facebook, The Gap, Fed Ex, Walmart, Re/Max, Walls Fargo and many more — announcing significant layoffs.
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In short, the jobs number for September should show that the Fed’s hikes are having precisely the designed impact of slowing the economy. It will also likely remove, however, any remaining shred of doubt that we’re in a deepening recession.
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And that could slow the Fed’s rate-hike campaign.
The second: The report on annualized Federal interest payments, released on October 27.
Late next month, the U.S. Bureau of Economic Analysis will release the first estimate of third-quarter Gross Domestic Product. Everyone will immediately focus on whether that number is positive or negative.
However, it won’t take long before eagle-eyed analysts find a very important number buried in that report: federal interest payments on an annual basis.
Reported quarterly inside the GDP report, this number shows how much interest we’re paying on our monumental federal debt.
As I’ve been reporting in this newsletter, the total for the second quarter had already soared to a new record high of $600 billion. The trendline has been pointed for the sky, despite the fact that the Fed’s aggressive rate hikes have yet to be factored in.
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That’s why the third quarter number should be absolutely shocking...and reveal that Powell & Co. simply can’t increase rates any further without cratering the federal budget.
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If anything will stop them, this will.
In other words, by the end of next month, everything the majority now believe about the investing environment will be radically changed.
And we need to be prepared.
Fortunately, today’s top experts are gathering to show us precisely how....
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“The World’s Greatest Investment Event”
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In just a few weeks we’re going to host the 2022 New Orleans Investment Conference, featuring dozens of the most insightful analysts and commentators around...plus hundreds of today’s most successful investors to share their ideas.
Consider the speaker line-up so far:
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James Grant...Jim Rickards…George Gammon...Danielle DiMartino Booth...Rick Rule...Brent Johnson...Tavi Costa...Peter Boockvar...Jim Iuorio...Dave Collum...Lawrence Lepard...Jon Najarian & Marc LoPresti…Dominic Frisby...Adam Taggart...Bob Prechter...Adrian Day...Mark Skousen...Mary Anne & Pam Aden...Steven Hochberg...The Real Estate Guys…Brent Cook...Thom Calandra...Chris Powell...Dana Samuelson...Gary Alexander...Albert Lu...Mike Larson...Nick Hodge...Lobo Tiggre...Omar Ayales...Jeff Clark...James Stack...Bill Murphy...Sean Brodrick...Mickey Fulp...Byron King...Rich Checkan...
...and, of course, yours truly.
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And there’s much more, including scintillating panels, in-depth workshops and delightful social events that will bring the best of New Orleans to you.
But this may be your last chance to be included in this blockbuster event.
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You see, the response to this year’s New Orleans Conference has been almost overwhelming. Our exhibit hall is about to sell out and our room block is going to close within days.
If you don’t act immediately to reserve your place, you could be shut out.
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Remember: Everything — the years spent mired in the pandemic…the macro-economic set-up…the geopolitical uncertainty…the teetering stock markets…soaring inflation…a looming generational commodities bull market…and the Fed’s upcoming retreat on monetary tightening — make New Orleans 2022 a must-attend event.
And by registering now, you’ll not only guarantee your place, but also save up to $400 from the full registration fee.
Just click on the link below...and join us in New Orleans!
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All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
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CLICK HERE To Register For
New Orleans 2022
And Save Up To $400
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