When the Fed’s Crystal Ball Fails, Part II

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. When the Fed’s Crystal Ball Fails, Part II By Nomi Prins, Editor, Inside Wall Street with Nomi Prins If you were an investment banker in 1997, you were in for an unusual holiday season. I’d already spent a decade in the lavish world of Wall Street and Canary Wharf. Extravagant parties were the norm. Think chocolate fountains and ice sculptures. But as we closed out 1997, the mood was subdued. And it’s no wonder… As I showed you [yesterday]( the financial world was reeling from the Asian currency crisis that kicked off that summer. [Featured: Former Goldman Sachs Exec: Everyone on Wall Street is investing, should you?]( Banks around the world were cutting back. The crisis had wreaked havoc on the markets and the profitability of banks. JPMorgan, for example, saw its own earnings drop by 35% that year alone. And economies were slowing at a time when a strong dollar intensified global market turbulence. If that sounds familiar, it’s because similar elements are at play right now. So in today’s essay, I’ll show you what this means for your money. And I’ll give you one way you can protect your portfolio as we head into 2023. Recommended Link [Poisonous new ideology “cheered” at the Fed…]( [image]( There are 780 economists working at the Federal Reserve… Yet those who believe in small government are outnumbered almost 50-to-1… Is it any wonder the Fed is cheering this [poisonous new ideology]( Unfortunately, every person in America has already had their finances hit by this new insanity… Yet the consequences are just beginning… [>> To find out how to protect yourself, click here, and I'll explain everything...]( -- The Fed Can’t Fight Supply Chain Inflation The Fed has been hiking rates aggressively this year. Because of this, the dollar has strengthened relative to global currencies. It has jumped to record levels. The reality is that the dollar can’t continue like that without breaking something. Yet the Fed remains focused on an inflationary battle it can’t fully win, as we’ve discussed here before. And it’s not just the Fed. The message from central banks and the impact of monetary policies worldwide have been focused on inflation. But behind that narrative, there’s the real story that central bankers, some of the economic elite, and the corporate media often overlook… And it’s a story that you should be paying attention to. Central banks can only do so much to fight inflation. And it’s not just me saying that now. The Federal Reserve is saying that, too. [Featured: One Stock Doubles Your Money, During Crisis?]( In fact, the New York Fed put out a report showing that supply chains comprise nearly 40% of inflation. To me, that means that the Fed is actively increasing The Great Distortion between the markets and the real economy – while the majority of the issue is beyond their control. The Fed and other central banks use blunt policy tools to fight inflation. The overwhelming response has been to aggressively hike interest rates. But the truth, as the Fed’s own research shows, is that continuing to hike rates won’t fix supply chain challenges. Raising interest rates also won’t soften an energy crisis, ease oil prices, resolve the war in Ukraine, or reduce Chinese lockdowns. These are all factors contributing to inflation and supply chain issues. Yet, sadly, interest rate hikes will harm middle- and lower-income earners. It could also trigger a recession in the U.S., or even a global recession – all things that will hurt workers and small businesses the most. Recommended Link [Market Wizard Larry Benedict revealing his best-kept secret for just $19]( [image]( Market Wizard Larry Benedict went 20 years on Wall Street without a single losing year… He delivered 23% returns in 2008 (while the market plummeted 37%)… And so far this year, he’s shown his readers how to make money nearly every week. For a limited time, he’s revealing his best-kept secret for just $19. This is the best deal he’s ever offered for his research service… and it could disappear at any time. Plus, he’s even offering a 10-second “over the shoulder” demo of his strategy in action. [Watch it here…]( -- What This Means for Your Money The question is – what should the Fed and other central bankers do? The simple answer is that they need to be patient and wait, or begin to pivot by reducing the size of rate hikes, at least. Why? Because, yet again, based on the Fed’s own research from the Kansas City Fed, it suggests that the supply chain could resolve itself over the next 12 months. Whether that happens or not, it suggests a potential deflationary trend. That could very well be a reason to believe that the real fear on the horizon is deflation, not inflation. Recommended Link [This is the new normal… And it’s not what you think]( [image]( A strange phenomenon is ‘distorting’ America’s financial system. If you listen to the mainstream media, you’d think a new crash is imminent. But today, former Goldman Sachs Managing Director Dr. Nomi Prins is coming forward with a different kind of prediction. “We ARE about to see a crisis like nothing we’ve ever seen before. It won’t be like the crashes we saw in 2000… 2008… or even 2020. In fact, the next crisis won’t be a crash at all.” – Nomi Prins It has nothing to do with a pandemic, or inflation, either, but “Americans who are hoping for a return to ‘normal’ are about to be left behind by a new reality.” If you have more than $1,000 in the bank, this could be the most important interview you see in the next 60 days. [Watch her bombshell prediction for America’s economy now.]( -- The good news is, whatever happens, you don’t have to sit back and watch your retirement savings evaporate. You can take active steps to protect and grow your wealth in any environment. One way to do that is with the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD). It’s an exchange-traded fund (ETF) that you can buy in a brokerage account, like a stock. And it offers the opportunity to invest in an array of low-volatility companies that pay high dividends. This strategy can help provide extra returns during periods of inflation as well as deflation. Happy Holidays! Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG What steps are you taking to protect and grow your wealth in this environment? What is your experience investing in low-volatility companies that pay high dividends? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: When the Fed’s Crystal Ball Fails, Part II). IN CASE YOU MISSED IT… [Goldman, BlackRock, Apple & Amazon Buying This…]( [Everybody is pouring money into this.]( Goldman Sachs invested $1.5 billion. JP Morgan spent $2 billion just in 2021… and plans to spend $10 billion more. And the world’s biggest asset manager, BlackRock, is going even bigger, investing $10 billion, saying it will provide a source of “perpetual capital.” In fact… A recent survey of 105,000 large institutional investors reported 95% are planning on[increasing investment in this sector.]( And they are not alone. Apple is spending $1.4 billion. Google says they are going to invest $9.5 billion in 2022 alone. And Amazon has already spent $34 billion. Tens of billions are pouring in. With more on the way… [To see what’s got everyone on Wall Street so excited, click here.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. 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