It Just Ain’t So...

[The Bleeding Edge]( Editor’s Note: Today, we’re sharing an insight from colleague and currency trader Imre Gams. As Imre says, the investing “world order” has changed. And investors need to adapt. Read on… --------------------------------------------------------------- It Just Ain’t So… By Imre Gams, analyst, Market Minute [Stephen Hester] As Twain put it, “It ain’t what you don’t know that gets you in trouble. It’s what you know for sure that just ain’t so.” In early 2021, investors knew for sure that the already low rates would stay that way. It was around that time that I bought my property in Canada. The mortgage broker tried to sell me on a variable rate at around 1.6%. He assured me that rates wouldn’t rise until 2023 at the earliest. It was easy to see why he thought that… Around the same time, Tiff Macklem, Canada’s version of Jerome Powell, told Canadians that “interest rates will be low for a long time.” Of course, it just ain’t so… Central banks hiked rates in unison in late 2021 and early 2022. Today, the average 30-year mortgage is above 7%. Those that took the variable rate are probably regretting it. Just last week, news broke of a family forced to sell the home they bought in 2021. Their mortgage payments jumped from $2,850 to $6,200. I don’t mean to make light of the situation. But in some sense, it’s a perfect illustration of the market we find ourselves in. Recommended Link [“Amazon Loophole” Allows Anyone to Collect Payouts]( [image]( Amazon. It’s one of the most profitable companies on Earth. Yet, according to Brad Thomas, a multi-millionaire, best-selling author, and former economic advisor to President Trump... What few people realize is, thanks to a little-known IRS loophole — billions of dollars get paid out each year... Required by law! With the next payout scheduled to go out on September 10th! Brad has been featured on Bloomberg, Fox & Friends, Barron’s, CNN, Kiplinger, NPR, MSNBC, and Forbes... But he’s never revealed this secret anywhere... Until now... [Watch the Video Now (Brad Reveals Amazon “Payout” Loophole)]( -- The New World Order The investing world order you have understood for the past thirty years or so is over. The biggest risk for investors going forward will be relying on the things they think they know for sure. Since the 1990’s, investors have known for sure that… - Inflation would stay low - Credit would be readily available - Central banks would always be there to save us If these conditions sound familiar, they should. Broadly speaking, this is the financial and economic environment we have enjoyed for the past thirty odd years. When something lasts that long, people assume it will last forever. But it doesn’t… Investors were pleased with the latest inflation reading here in the United States. The topline figure from the consumer price index clocked in at “just” 3.2%. Never mind that core inflation was close to 5%. And never mind that this figure calculates a change from July of 2022, when inflation was raging the hottest. And never mind that the “official” numbers are inherently untrustworthy. And never mind that this is still a far cry from the Fed’s 2% target. Forget all that and, sure, celebrate the CPI print. Recommended Link [ATTENTION: Digital Dollar Could Send this $0.25 Play Skyrocketing]( [image]( In just a few days, the U.S. government could announce [this mandatory recall on the U.S. dollar…]( And replace it with a new digital dollar. And that could send [this $0.25 alternative investment skyrocketing.]( This is the same type of investment that’s already attracting the attention of legendary investors and billionaires like Elon Musk, Mark Cuban, and George Soros. If you know the necessary steps to take right now, not only will you protect your money, you could come out of this shift wealthier than you ever thought possible. But you need to act fast. [Click here to get the exact steps to take right now.]( -- What about credit? In May, Chair Powell assured investors that: Conditions in [the banking sector] have broadly improved since early March, and the U.S banking system is sound and resilient. Maybe. Maybe not. By the Fed’s own data, banks are tightening lending standards as if we’re heading into a recession. And that’s a problem for an economy that depends on the continued expansion of banking credit just to operate. But surely, should anything go wrong, the central banks will be able to “save us.” After all, that’s what happened in 2008 and 2020. I’m not so sure… The Fed finds itself between a rock and a hard place. The rock is the obvious signs of a looming recession (the yield curve is as inverted as it’s been since the early ‘80s). The typical “solution” would be to cut rates. But the hard place is the inflation levels that are still nowhere close to the Fed’s goal. There are no good options left. I don’t share this scare you. But if you’re relying on the things you think you know for sure, it’s going to be a very rough few years. And don’t let the tremendous rally of the last six months fool you. Every bear market has months-long countertrend rallies that trick investors into letting down their guard. The recent decline in the Nasdaq—down some 7% in the last month—should be evidence of that. So, as an investor, what should you do? Recommended Link [Man discovers one ticker bombshell after getting fired multiple times]( [image]( In my first 2 years as a trader, I got fired more times than I can count. I would get hired, start trading and lose money. Why? I was trying to trade everything. Then I realized what was missing. Specialization! Forget about 99% of stocks. Find one thing and stick to it. [Watch my video here to see how I trade.]( – Larry Benedict [Click here to learn more.]( -- Sentiment and Momentum One of the best indications of near-term movements in stocks is sentiment and momentum. I know this completely flies in the face of everything you’ve ever been told or believed about markets before. Almost every financial advisor and investor out there relies on fundamental and conventional economic analysis to make decisions. For years, that “buy and hold” approach worked well. I think that’s over. Today, the best returns will be made by traders, the individuals who buy the bounces and mercilessly sell the tops. And contrary to popular opinion, anybody can be a trader by following a few simple rules. As a test, I conducted an experiment with two novice traders. The experiment was simple. Follow a handful of rules and execute them without exception. I think the results will surprise you. They had the chance to take more profits off the table than some of the highest paid traders in the world. On August 23 at 8 p.m., [I’d like to show you]( . More importantly, you’ll see how you can immediately use this information to make better financial decisions in the future. [To learn more, click right here.]( Happy trading. Imre Gams --------------------------------------------------------------- Like what you’re reading? Send your thoughts to feedback@brownstoneresearch.com. 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