Hey There Income Hunters,
Well the economic data for Q4 2021 has been coming in very weak – and this before January, which saw the S&P down 5.25%.
Worse than that, consumer spending, as measured by the consumer discretionary sector, was down 9.5%.
And consider this:
GDP for Q4 came in at 6.9%, but 4.9% of the growth came from companies building inventories to front-run inflation and escape the nightmare supply chain issues.
This is all about the magic of inflation …
On one hand it is making consumers pessimistic while on the other it is forcing the Fed to crush the consumer.
This is when trading can become very difficult.
Unless you are part of the incredible community that goes with the flow regardless of the market conditions
For example, Mark killed in October as the market soared, which is not surprising.
But he also crushed it in January as the market got slammed – including nine winners with top-end gains of 104% .
While many traders are still trying to figure out how to trade inflation, Mark simply dissects the option flows and stacks winner after winner.
And tonight he’ll reveal exactly how he does it – and how you can, too.
Join him LIVE at 8 p.m. EST and he’ll show you how dominated January and started February yesterday with a pair of closes, including a 64% win.
PLUS you’ll receive an exclusive trade that he is sharing only with attendees …
Before that though …
I’ll explain why the Fed’s mandate to reduce inflation will be impossible and what Plan B will mean for the markets …
Like Tom Brady, Economic Growth Is Now a Thing of the Past
By irresponsibly printing money to maintain our dominance on the world stage, the Fed has killed any chance of growing America’s economy through hard work and productivity.
Like every empire in history, it is a story of debt.
New empires start with a clean balance sheet and an ability to grow the economy by lowering interest rates to increase credit and spending.
It looks something like this:
Borrowing creates a debt cycle that increases as credit and spending increases.
Discipline is needed to spend less in the future to pay off accumulated debt.
But the Fed never put money away when the times were good, so all they did over the past 80 years is accumulate debt that now totals $30 trillion dollars.
$30 trillion in debt and $20 trillion in nominal GDP. Woof.
The problem now is, with debt that large it will never be paid back. Worse yet, the $10 trillion wealth gap is suffocating the economy.
This is a simple example but is extremely important to understand for this reason:
The minus $10 trillion in net finances initially forced the Fed to let inflation get out of control.
This was a desperate solution, used by many nations in the past, to keep printing a massive amount of new dollars that can be used to pay down a fixed amount of debt.
The problem is inflation is very complex. Once you ignite it, you can not easily bring it back to normal levels like the Fed’s 2% target.
Plan B
I hate to have to tell you this, but there is no plan B.
The Fed is an independent entity with only a dual mandate of maximum employment and stable prices (low inflation).
The maximum employment part is easy because only about 60% of Americans even participate in the workforce.
But the central bank blew it on inflation by not tightening as soon as it started getting out of control Remember “transitory?”
So, there is only one path …
Raise rates and drain liquidity from the markets and economy to reel in inflation back to 2%.
While that is a plan, it is certainly not a plan that puts hard working Americans' interest first.
But when you mismanage your finances there are always consequences.
Bring It Home
As traders of all markets, we must adjust to the changing market environments.
There are always ways to stack profits if you can make the necessary changes and go with the flow.
This is perfect timing to hear it from the options master Mark Sebastian tonight at 8 p.m.
Get ready for the unprecedented positive impact his wisdom will have on your mindset for trading and in building generational wealth for you and your family.
Enjoy and as always …
Live and Trade With Passion My Friends,
Griff