 | Amanda Heckman
Editorial Director |
Do you hear that? It's the ghost of Paul Volcker, groaning at the Fed's action this week. After asserting mere weeks ago that "a 75-basis-point increase is not something that the committee is actively considering"... Jay Powell quickly reversed course after May's inflation numbers clocked in at a blistering 8.6%. On Wednesday, the Fed raised interest rates by 75 basis points, the largest increase since 2004. Time to cue the applause? Hardly. But there are other reasons to have optimism in this market. [What's the #1 Stock Under $5? Find Out Here.] No Paul VolckerPowell's announcement was no "Saturday Night Special." That announcement, from the late 1970s, was when Volcker famously abandoned incremental rate increases, instead focusing on drastically tightening the money supply to squash inflation... which in turn brought on a recession. Powell and company are foolish enough to believe that despite flooding the markets with trillions in fake money... they can bring the economy in for a "soft landing" with a series of smaller hikes. Even President Biden chimed in on Thursday, telling the AP that a recession is "not inevitable." But the markets no longer believe them. While the major indexes ended Wednesday in the green, buoyed by a "bolder" Fed, the reversal was swift on Thursday. More bad news about the economy sent stocks plummeting. We learned that retail sales fell for the first time in five months in May. The Federal Reserve Bank of Atlanta cut its estimate for second quarter growth to 0%. And Guggenheim Chief Investment Officer Scott Minerd said the U.S. may already be in a recession, given the slowdown in consumer spending. It's clear that we've still got a long way to go before the Fed will be finished cleaning up the mess it made. But while things are tough right now... there are two reasons investors should not panic. The Future Is DigitalThe Manward office was nodding along this week with a telling news piece from Bloomberg. As Andy told you on Tuesday, the news rag asked major business and market leaders where they see the markets in 30 years. The consensus can be summed up in one word... one we've been excited about for years... Digitization. The folks interviewed were united in their belief that in 30 years, just about every asset under the sun will be digitized. Our global financial markets will be transformed... and technology and the blockchain will play pivotal roles. It's why Andy stressed that "patient investors will make a killing in this market." Now's the time to get in early on the technology that will make our economy fully digitized. And better yet... with the market in a downturn, you can get in at a discount. A Means to an EndThe other piece of good news came out of the video call we held with our paid Alpha Money Flow and Venture Fortunes subscribers this week. On Thursday, Andy shared with us some of the most important questions that came out of the call... But he also showed one chart in particular that should allay concerns about this market. Take a look at this... This chart traces the long-term average of the S&P 500 over the actual price movements of the index. As Andy said in the call, "Almost everything in physics and in nature reverts to the mean." And that's exactly what's happening now. We can see an end to the downturn in sight as the index falls back to its mean. So get your "buy list" ready because this chart is a big reason why Andy is so bullish right now. As Powell fumbles his way out of the inflation mess he created... and as Paul Volcker rolls over in his grave... smart investors should take the long view and see this market for what it is... An incredible buying opportunity. And we've got the perfect play to plunk some dollars into. It takes advantage of both today's cheap prices and the future of our digital economy. At just $5, it's Andy's No. 1 play for this crazy market. Get all the details here. With the mainstream media creating narratives that fit its agendas, advertisers and viewership, it's always been Manward's mantra to question everything... to look beyond the headlines and find the story behind the story. After a recent trip to Mexico, Joel has found himself wondering what he really knows. Keep reading. Despite the headwinds in the market - and there are plenty - Alpesh has a great Stock of the Week for you this week. The stock meets his proprietary Growth-Value-Income rating... is already up 20% this year... and has low volatility. In this kind of market, that's crucial. Get all the details on the stock - including the ticker - in this week's Stock of the Week. Click here or on the image below to watch the video. "One of the time-honored functions of a central bank is to protect the integrity of its nation's currency." - Former Federal Reserve Chairman Arthur F. Burns, one week before Paul Volcker unleashed his "Saturday Night Special" Want more content like this? | | | |
Amanda Heckman | Editorial DirectorAmanda Heckman is the editorial director of Manward Press. With unrivaled meticulousness, she has spent the past dozen or so years sharpening Andy's already razorlike wit... and has worked with numerous bestselling authors and award-winning financial gurus along the way. | | |
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