Hey There Income Hunter,

There was more great  football and for many areas of the country over the weekend. (Sorry ‘bout that KC and San Fran).

But what was more unbelievable than the comebacks by the Cincinnati Bengals and Los Angeles Rams is the current market environment.

In 40 years of trading, I think this is different from any other I’ve seen.

Look, I’m not changing my call for an extended bear market over the next six months, not by a long shot …

But what I am seeing is a Fed that is willing to sacrifice our economy in order to get inflation down. 

The fact that Jerome Powell focuses so much on how strong the labor market is convinces me of this.

You see, the Fed only has two goals:

• Full employment. Based on the Fed’s own data, this has been accomplished.

• Stabilize prices (inflation). The Fed is nowhere close on this.

The equity bear market will be with us for many months, and now is the time to consider “alternative markets.”

>> And I have an easy four-step process that will allow you to do just that. <<

Today, I will share what I am seeing to convince me the bear is out of hibernation for good in 2022.

A Politicized Fed Will Push the Economy Into Recession

We have not had to wrangle with inflation for 40 years.

But based on the Fed’s own official inflation gauge, we are officially there …

The Fed may have to inflict a lot of pain on the economy if it expects to bring today’s inflation down to 2-2.5%, which is the target range. 

For the markets, what is different now is that the Fed PUT, meaning Fed stimulus that has been coming in at relatively small drawdowns, i.e. -5% or so, is gone. 

Get used to the new Fed Covered Call. Yes the Fed will now be squashing rallies in an attempt to cause a recession via loss of wealth rather than raising rates.

Dear god, Griff, why, you might be asking?

Because inflation has shown up mostly in prices for stocks and bonds, so the fastest way to reduce it is to burst the market bubbles. 

It’s a dangerous game but President Biden came out and declared the most damaging impact on the economy (Democrat voters) is inflation. The President and Treasury Sec. Janet Yellen want the Fed to engineer a recession that allows them to step in with direct stimulus to the middle class and below.

But there is one problem with the new plan …

Recessions Crush Stocks More Than Fed Rate Hikes

History is a great guide.

 As you can see in the graph below, there is potential for a large drawdown in stocks this year. 

We must also consider how much more damaging this recession will be due to the enormous debt load that the government, households and corporations are carrying.

Alternative Assets Will Protect You and Make You Money

America is in transition to joining a couple of global leaders that will make up a “new world order” in the years ahead.

Our sole long-term dominance is ending. 

The US government may not like that, but must do what is necessary to be relevant on a changing world stage. 

There are a number of countries (led by China) and asset classes that will be appreciating throughout 2020 while the US and other countries’ assets depreciate after years of being inflated. 

When the market changes we must be ready to change with it. My goal is to help you make money in all market environments and, trust me, as someone who traded bonds for the biggest banks in the world for 25 years, bear markets present great opportunities. 

That’s

Bring It Home

Power Income Trader is positioned for a US bear market while being long markets and currencies that have the fundamentals and technicals in place to trend higher.

PIT members get exclusive access to my core portfolio and weekly watchlists of hot stocks in play for the week. They also receive direct email and text alerts of the trades, along with detailed reports

We are all in this together and there are so many excellent low risk/high reward trades begging to be executed every day …

The real winners all begin with understanding the global macro flows that give you a HUGE tailwind behind trades – and that is what makes the difference between 10% returns and 50% returns over the long run.

Join me in Power Income Trader today

Until then …

Live and Trade With Passion My Friend,

Griff