The Fed Can’t Help You
Don’t fight the Fed.
This is good advice … or at least it was in normal times.
But we’re not in Kansas anymore, and unfortunately for stock prices, the Federal Reserve’s best efforts are not enough to sustain a bull market.
That means stocks are headed for another steep decline as earnings struggle to climb back anywhere close to their previous levels.
Despite this, there are things you can do to thrive in this environment.
The Fed Is Helpless … But You’re Not
I’m not a pessimist by nature. I’m by no means a permabear. But we must consider the real-world economy when we invest in companies. Just like you, I want the economy to open back up tomorrow, but it’s going to take time.
Eventually headlines about Fed stimulus will take a back seat to headlines about continued sharp declines in earnings, not to mention continued unemployment and a hit to GDP. Which can only mean one thing … we are indeed headed for a double bottom.
But you can take advantage of this situation by taking some simple steps.
In this week’s Your Money Matter’s, Clint and I walk you through strategies that will help you make gains during this crisis. There are concrete steps you can take to find opportunity in crisis.
In today’s video, you’ll discover:
- A trick to improve your positions and set yourself up for tremendous performance over the long term. (11:56–13:50)
- Which sector will offer you the potential for triple-digit gains. (13:50–14:30)
- The trigger that will derail this stock market recovery. (4:53–5:37)
As a side note: We don’t provide transcripts for our YouTube videos. Many of you have asked. However, if you would like to see subtitles, you do have that option. Click the “cc” button in the bottom-right corner of the video. The transcription won’t be perfect, but it should help.
Editor, The Bauman Letter
An economist by training, I grew up in the U.S. but emigrated to South Africa in the mid-1980s where I became deeply involved in the development and implementation of post-apartheid economic and urbanization policy. During the 90s and 2000s, I was a consultant to a variety of entities, including African and European governments and the United Nations.