♟ A Complete Mistake...

This number tells us our inflation battle is far from over. [Trade of the Day Logo] [Wooden Blocks Representing Rising Interest Rates]( Editor's Note: In light of the Fed's latest rate hike, we have some important information you must read. Below, our friend Andy Snyder of Manward Press details how interest rates are only part of the inflation story. The other part - the part hardly anyone is talking about - is flashing a bright warning sign. And it's proof the Fed's inflation battle is far from over. He's also showing investors a brand-new asset class to invest in. And as the markets continue to be rocked by the Fed's moves, this unique investment class could be a helpful way to survive and even thrive. [Click here to learn more about this asset class.]( - Ryan Fitzwater, Associate Publisher --------------------------------------------------------------- ["This battle with inflation is far from done."]( Andy Snyder, Founder, Manward Press [Andy Snyder] As usual, the herd of blind retail investors has gotten things wrong... and the headlines, which lure them in the wrong direction, offer no help. All eyes are on the Fed and its rate hikes. That's fine. But it's like looking at the traffic 100 miles in front of you. By the time you get there... things will have changed. It takes months, if not years, for the full effect of quickly surging hikes to spread through the economy. The Fed does more than just adjust interest rates. And one important series of moves is flashing a warning sign. A prominent analyst (Mizuho Bank's chief economist) recently called it a "complete mistake." "The Fed is breaking things," another analyst said. "These aren't healthy moves." What they're talking about happened mostly behind the scenes. It's too complicated for the headline writers and too boring for the talking heads. But it's critical. The fate of our money depends on it. And there are increasingly loud warnings of trouble. [URGENT PRICE UPDATE: Wall Street Projects $30 Stock to Move to $280 in 18 Months.]( [Consensus Target Price]( The spiraling European energy crisis has a silver lining... Wall Street says it could drive one stock from $30 to $280 in just 18 months. [Find out why right here.]( A Long Way to Go You've heard of quantitative easing. It's been the modus operandi of the Fed for over a decade. It's the idea that when times get tough, the Fed prints money by purchasing Treasurys, mortgage-backed securities or any of a host of other assets. It's a simple process. Instead of selling Uncle Sam's debt to the average person or company and using money that's already flowing through the economy, the Fed buys assets using brand-new money. It adds cash to the economy and juices things up. During the pandemic, the Fed pushed nearly $5 trillion into the markets this way. But now, as you may have heard, it's doing just the opposite. Quantitative easing is dead. Quantitative tightening has taken its place. In this scheme, the Fed takes the money it earns from its assets and burns it. When a Treasury pays interest or matures, for example... Powell and his crew toss the cash in the burn barrel, pulling it out of circulation. Just like that... there's less money to go around. You can see the scale of things in the chart below. Lots of easing, but not much tightening. [Total Assets of the Federal Reserve]( The poor folks in charge of such things are learning it's a lot easier to print money than it is to burn it. The Fed's balance sheet has fallen by just $381 billion from its peak, set in April. It has a long way to go to evaporate the $5 trillion or so it printed a couple of years ago. But even the little the Fed has done is creating pain... immense pain. The markets the Fed has "dabbled" in over the last decade are now facing severe liquidity crunches, with premiums on newly issued Treasurys running at multiyear highs versus existing Treasurys. It's a sign of stress in the market. As one analyst put it, if the Fed runs down its portfolio too much, it will break something in the market. And if it doesn't, we'll be stuck with inflation. The Fed says it is sticking to its policy and will burn $95 billion a month. Add to that its insistence that interest rate increases will continue far into the new year, and it becomes obvious... This battle with inflation is far from done. Pay attention to what's happening behind the scenes. It's not pretty. [Logo] YOUR ACTION PLAN The markets have been rough this year... and it's sure to continue in 2023. That's why I just did something big. It involves a brand-new asset class... totally outside the traditional stock market. [If you're looking for something fresh, something unlike anything you've seen before... check this out.]( Be well, Andy [This ONE Weekly Trade Is on Fire]( [Watch This Video TPU 85]( Former CBOE Trader Dishes the Secret to His [83% Win Rate]( Now he's GUARANTEEING he beats it! [You have to watch this.]( [Smile] FUN FACT FRIDAY The S&P Global Purchasing Managers' Index (PMI) report looks recessionary as businesses continue to contract. The PMI fell from 47.7 in November to 46.2 in December. A PMI index over 50 represents growth or expansion, and an index under 50 represents contraction. The recent figures signal the economy is contracting and indicate increased odds of a recession heading into 2023. However, around mid-2023, the picture could change. According to models at [tradingeconomics.com]( the index is projected to trend around 53 points in 2023 and 52.4 points in 2024. [PMI Shows Recessionary Activity - But There's Hope]( INSIGHTS YOU MAY HAVE MISSED [Wooden Blocks Depicting the Word Bonds]( [Why I’m Buying Bonds in 2023]( [Buying At These Levels Is a Gift]( [Buying at These Levels Is Truly a Gift]( [The One Trade I Like This Week]( [The ONE Trade I Like This Holiday Weekend]( [Report Card]( [2022 Report Card: Nowhere to Hide (Except One Place)]( [Instagram]( [Follow Us on Instagram!]( [FACEBOOK]( [TWITTER]( [Monument Traders Alliance] Monument Traders Alliance You are receiving this email because you subscribed to Trade of the Day. To unsubscribe from Trade of the Day, [click here](. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. 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