That ‘Soft Landing’ The Fed Was Talking About? It’s Happening

Son of a gun, it’s happening! Against all odds, the Fed seems to be delivering a soft landing. How did it do this? And what does it mean for your portfolio? I’ve got the answers… [mbd-thumbnail] CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »» [/mbd-thumbnail] [mbd-video][/mbd-video] [ad] ADVERTISEMENT The only money-making […] You’re receiving this email as part of your subscription to Andrew Zatlin’s Moneyball Daily [Unsubscribe]( [Moneyball Daily] That ‘Soft Landing’ The Fed Was Talking About? It’s Happening September 22, 2023 Son of a gun, it’s happening! Against all odds, the Fed seems to be delivering a soft landing. How did it do this? And what does it mean for your portfolio? I’ve got the answers… [CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »»]( ADVERTISEMENT The only money-making acronym you need to know for 2023 Soon, the acronym "PVAB" could be as commonplace as "ASAP" or "TGIF." But if you don't know it yet, you're not too late... By the time it fully rolls out, PVAB will have a bigger lasting impact on our society than the Internet. That's why some of the biggest names in the business — from Bill Gates to Jeff Bezos and Elon Musk — are pumping billions into it. To see how you can get massive returns from what could well be the biggest investment opportunity of this year, [click here now](. For a transcript of this video, see below. This transcript has been lightly edited for length and clarity. That ‘Soft Landing’ The Fed Was Talking About? It’s Happening This week, the Fed decided not to raise interest rates. If that sounds strange, there’s a good reason. Since February 2022, the Fed has held a dozen meetings. And at each one, it’s raised interest rates — until now. This pivot — to inaction — indicates the Fed is on its way to achieving the “soft landing” it aimed for at the start of this saga. Here’s how it’s pulling it off… Keeping the Economic Fire Burning Think of the Fed as glorified fire keepers. Its job is to keep the economic flames burning at a certain level — not too hot, but not too cold, either. When COVID hit, the economic fire died down. Supply chains dried up and the Fed had to throw everything it could on the fire to keep the flame alive. Take a look at this chart: It shows America’s Gross Domestic Product (“GDP”) year-over-year. Notice the turmoil COVID brought in 2020. (That’s the huge drop-off that sinks below our base line.) But look what happened next. The Fed used accelerants like stimulus checks and 0% interest rates to stoke the economic flame. And sure enough, the fire raged. But there was a problem… Too Big Too Fast The Fed poured too much gasoline on the fire. Suddenly, we had runaway inflation, as measured by the consumer price index (“CPI”) — bad news for the economy: That forced the Fed to step in and, this time, try and tame the fire. It cut back on stimulus checks and, more importantly, jacked up interest rates. As you can see by the chart above, these moves worked. Inflation took a nosedive earlier this year. Right now, CPI is at 4%. But here’s the thing… The Fed wants this number to reach 2%. That’ll complete the soft landing it’s aiming for. How do we get it down that far? The Factors that Go into Inflation For starters, interest rates are going to stay higher for longer. But before you hit the panic button, consider this: Several factors go into shaping the overall CPI number. Let me show you: Sectors like food, clothing, and transportation all contribute toward this number. But by and large, the sector that contributes the most to inflation is housing. Two Options At the moment, housing is keeping overall CPI numbers very high. And that gives the Fed two options: - It can continue to push for a housing recession. This involves continuing to increase mortgage rates in hopes that housing prices fall, or at least flatten out. - Or, it can try for an “everything else” recession. Basically, this entails crushing the broader economy until the overall CPI number drops to that 2% goal. I’m predicting option No. 1. The Fed will try and keep mortgage rates high in the hopes that the housing market throws in the towel. Is that problematic? The Fed’s in a Good Position Not as much as you might think. You see, the Fed has achieved control of this situation. It’s reduced consumer and business anxiety and gotten inflation largely under control. So even if mortgage rates continue to soar, the Fed has options. It can lower these rates if the economy gets too slow (i.e., the fire dies down too much)… Which could take place in the final stretch of this year. If that happens, that’ll set the stage for a bullish 2024. Here’s how to prepare… Get Ready Typically, I’m all for having global exposure in your investment portfolio. It’s a way to capture additional profit opportunities and achieve diversification. But with all the turmoil happening in places like Russia and China, I’d stick with domestic, U.S.-based companies. Right now, a lot of them are lean and mean. They’ve spent the past several months trimming staff and inventory. Now they’re ready and eager for business to pick up. If you’re a Moneyball PRO subscriber, I’ve got a domestic company I’m super excited to share with you… I believe its stock could deliver 50% gains over the next year alone. We’re in it to win it. Zatlin out. FOR MONEYBALL PRO READERS ONLY > [LEARN MORE]( < In it to win it, [Andrew Zatlin] Andrew Zatlin Moneyball Economics Copyright 2023 © Moneyball Economics, All rights reserved. You signed up on []( Our mailing address is: Moneyball Economics 1125 N. Charles Street Baltimore, Maryland 21201 [Update Subscription Preferences]( | [Unsubscribe from this list]( | [Terms & Privacy]( RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. 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