The Fed Will Soon Announce It is Buying Stocks
I have a crazy announcement to make…
The Fed will soon announce that it is buying stocks outright on the open market.
I realize that sounds insane. After all, by law the Fed is barred from buying stocks.
However, I am 100% certain that the Fed will announce this within the next six months.
How do I know this?
Because the Fed has made it clear it will stop at NOTHING to reflate the financial system.
The Fed’s Desperate to Keep Markets Propped Up
Case in point, earlier this week the Fed announced that it will begin buying corporate bonds from individual companies.
This is the first time in history that the Fed will do this. Indeed, the Fed has been making A LOT of firsts in the last few months.
For the first time in history, the Fed is buying:
- Municipal bonds (debt issued by states and cities)
- Corporate bonds via exchange traded funds and indexes
- And asset-backed securities ranging from student loans to certificates of deposit and more.
The Fed is also engaged in the single largest quantitative easing (QE) program in its history: buying a total of $120 BILLION in assets per month ($80 billion in Treasuries and $40 billion in mortgage-backed securities).
And the Fed intends to continue doing this for years. Indeed, just yesterday the Fed Chair Jerome Powell emphasized to Congress that the Fed is “years away from halting its assets monetization scheme.”
So when will the Fed announce that it will buy stocks on the open market?
As soon as we get another market plunge.
Keep an Eye on the Next Major Correction
It is not coincidence that the Fed announced its latest monetary scheme when the stock market experienced its first significant correction since the March 23 bottom.
Put another way, the Fed couldn’t even stomach a 10% drop in stocks without intervening in the markets by printing more money and buying more assets.
Which is why I am 100% certain the Fed will announce it is buying stocks outright during the next major market correction.
In fact, I personally believe the Fed has already started propping up stocks already… it simply hasn’t announced it yet!
Spotting “Ghost Money” in the Markets
Why do I say this?
Because my research has identified massive pools of anonymous money mysteriously hitting the stock market each and every week.
These trading patterns are so big and so unique that they can only come from one source… central banks.
And when you know how to spot them, you have the chance to pull thousands of dollars from the market in under two hours… consistently.
If you’re interested in learning more about how you can profit from these mysterious trades, please click here.
Editor, Money & Crisis