We know the Fed’s hand is heavier than ever, there’s no denying it… and we want you to know what the hell to do about it!
The experts we’ve collected to attend our annual Irrational Economic Summit this year have sharp, insightful thoughts about the Fed. It will be well worth your time to hear what they say about its effect, on us, as investors.
As I see it… the Fed is to blame for the next financial crisis (whatever shape that may take, and whenever it should finally appear).
But instead of crying about it… I’m more focused on profiting off the Fed’s intervention.
Essentially, you have two choices heading into the next global financial crisis.
You could do exactly what you did before the last crisis, in 2008.
Or, you can arm yourself with a far-superior “survival strategy.”
Mind you… I don’t actually know what you did ahead of 2008. And I don’t know exactly how you fared through that confusing, tumultuous period.
But I know what a majority of “typical” investors did… and I know that had they used my survival strategy then… well, they’d be a lot richer (and happier) now.
Let me show you what I mean…
I want to share a chart that shows the power of this “survival strategy” I’m talking about.
And then I’ll explain how this strategy exploits a Fed-driven phenomenon – one that I spoke about publically at our Irrational Economic Summits, in both 2014 and 2015.
Here’s the chart:
Basically, if you made a $10,000 investment in the S&P 500 in August 2007, it would now be worth $13,900 – a total return of 39%. And you only would’ve gotten this return if you were willing to sit through a 53% drawdown!
Meanwhile, a $10,000 investment in my “survival strategy” would now be worth $22,400 – a 124% total return. And you could have gotten there quite smoothly, never losing more than 5% of your initial investment.
Pretty good deal, right?
Not only is my survival strategy able to weather the storm better than a passive investment in the stock market… it can generate stronger returns, with less volatility, over the long term.
And that’s all thanks to the Fed! Not despite it.
You see, back at our Irrational Economic Summit in 2014, I began talking about a policy divergence among the world’s central banks, where some will increase their interest rates… while others would continue pushing them lower.
And now, that day is here. While the Fed is on course to raise interest rates, almost all other central banks in the world are doing the opposite.
What’s more, I knew back in 2014 that this divergence in global monetary policy would likely have two effects:
- It would confuse the snot out of people…
- And it would set stock markets around the world on opposing paths – expanding the distance between the “big winners,” and the “big losers.”
It took a while for this theme to fully develop, but consider where we are today…
Over the last quarter, the best-performing stock market in the world is up 46%. And the worst-performing is up 6%. That’s a HUGE spread, at 40%! And it was even wider just a few weeks ago – at a whopping 63%!
The spread between top- and bottom-performing global stock markets hasn’t been this vast in a bull market since December 2007. And my research shows this is a warning sign of higher volatility and lower (buy-and-hold) returns ahead.
This is what I was talking about in my Irrational Economic Summit speeches – back in 2014, and again in 2015. And this is why I think you should consider a “survival strategy” approach ahead of the next financial crisis.
I’ll be speaking to the ins-and-outs of my strategy during this year’s conference. As far as I know, it’s the only strategy that’s able to capitalize on these central bank shenanigans (very safely).
You can bet plenty of “single-finger salutes” will be thrown the Fed’s way at our Irrational Economic Summit this October.
And while that’ll be a lot of fun… I want to make sure you’re prepared to profit off the Fed, too!
To good profits,
Adam O’Dell, CMT
Chief Investment Strategist, Dent Research