The FED: Now Powerless, Awaiting Hard Impact

Daily Chart Uly 29 InvestWithAlex

7/29/2015 – Another positive day with the Dow Jones up 121 points (+0.69%) and the Nasdaq up 22 points (+0.44%). 

As predicted here yesterday, Janet Yellen and the FED continue to beat around the bush. Here is my take on all of this. They are either really…really stupid -OR- they understand exactly where we are and literally feel paralyzed.

Further, from what I can tell, no one out there shares my view. A view I deem to be very accurate from a sheer stand point of what my mathematical and timing work shows happening in our capital markets over the next 24 months.

Sometimes a picture is worth a thousand words. The picture below is, more or less, exactly where the FED finds itself today. The plane is on fire, there is no hope, impact is imminent and it is just a matter of time.

plane on fire

That is to say, it is too late, they have missed the boat on raising interest rates. Let me give you a hypothetical example. What do you think will happen if the stock market crashes 25-30% between now and November, bringing the US Economy to screeching halt……in the very same fashion it did in 2008?

And if you believe that is impossible, you shouldn’t be investing in capital markets. Period. 

Well, the FED will find itself in an impossible situation. There is very little they will be able to do in order to backstop the market and/or prevent a severe recession. Remember, the interest rates are still at zero. Another round of QE? Most certainly, but there is no reason to believe that the bond market won’t throw a fit this time around.  In other words, checkmate and game over for the Fed!!!

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. July 29th, 2015  InvestWithAlex.com

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