Central Banks Are Going NUCLEAR With Monetary Policy
We are about to enter the single greatest trading environment in months – possibly years.
Because central banks are going NUCLEAR with monetary policy.
On Monday of this week, the Bank of Japan bought a record amount of stocks via its quantitative easing (QE) program.
The very next day, the U.S. Federal Reserve performed an emergency interest rate cut of 0.5%.
Now, there are calls for the European Central Bank and the Bank of England to cut their own interest rates and engage in more QE themselves.
And that’s just in the last FOUR DAYS.
And I’ll be the first to tell you, more interventions are coming.
The fact is that beyond a shadow of a doubt, we now know that the financial system is completely addicted to central bank interventions.
Put another way, central banks can NEVER normalize monetary policy without triggering a crisis similar to 2008. Which means… central banks will be forced to intervene more and more going forward.
Last time we saw these interventions was when the global economy was slowing in 2018. Now it’s the economic impact of the coronavirus. Soon it will be climate change or something else.
But the fact remains… central banks will use ANY excuse to intervene in the financial system. And it’s going to lead to a TSUNAMI of liquidity hitting the financial system.
Those who trade stocks, will do extremely well in this environment.
Stocks (and Bonds) Will Benefit from the Upcoming Market Environment
I expect we’ll see stocks rise to 3,600 on the S&P 500 – if not higher – before the end of this year.
That’s nearly 20% higher from current price levels.
Bond traders will also do well as bonds collapse to record lows.
However, if you want to see truly massive gains – like 69% in a single day – you need to look into the currency markets.
Maximize Profits Using the Currency Markets
Stocks get most of the attention from the financial media, because most investors think of them as the most important asset class.
They’re not. In fact, stocks are one of the smallest markets on the planet.
Globally, the stock market is around $80 trillion in size.
That sounds like a huge amount… until you realize that the bond market is more than THREE times this at $244 trillion.
And the currency markets dwarf even the bond markets!
While it’s impossible to know their full size (every currency trade involves two currencies so the net size is impossible to measure), we do know that the currency markets trade an astonishing $6.6 trillion per day.
To put this into perspective, the New York Stock Exchange – the single largest stock market in the world – typically trades just $200 billion in volume per day.
Put simply, based on volume alone, the currency market is 33 times larger than the stock market. This is the largest, most liquid market in the world. So when a major change occurs, it hits these markets first.
That’s why if you’re looking to gain insight into what’s going on in the global financial system… you NEED to look at the currency markets.
A Great Environment for what I call Alpha Signals
An “Alpha Signal” occurs when a central bank pumps too much of their currency into the financial system too fast.
At least that’s ONE way they can occur.
And these days – concerns over the coronavirus, an election year, and coming off a 10-year bull market – it happens a lot.
When you catch the right Alpha Signal at the right time, they can produce fast profits.
My system has helped find opportunities for double-digit gains in just a few hours, 50%+ gains in 48 hours, or even doubling your money in one day.
I wrote to a small group of readers yesterday, “We have already had three Alpha Signals in the last seven days. And by the look of things, we’re about to get several more.”
In fact, I have two potential Alpha Signals I am tracking right now. And I don’t want you to miss them.
Just click this link and I’ll show you how you can take advantage of the single greatest trading opportunity we’ve seen in months, maybe even years.
Editor, Money & Crisis