37 Words That Signal the Beginning of the End (Again)

Please do not reply to this message. Replies to this message are routed to an unmonitored mailbox. You are receiving this email as a part of your subscription to Total Wealth. Your ability to alter your subscription information can be found at the bottom of this email. [Total Wealth] February 28, 2018 [Tiny startup on the brink of an epic sales surge (major announcement expected)]( With a swing of a gavel, a federal judge just rendered a shocking verdict - and ignited a [potential 28,700% revenue surge]( for a tiny Silicon Valley startup. Right now, this company's revenue doesn't exceed $6 million... but that won't be the case for long. Because this company's breakthrough innovation could catapult them to the stratosphere. [Go here for all the details]( - before everyone else gets in on this. --------------------------------------------------------------- Keith Fitz-Gerald's PREMIUM SERVICES Research [This "Big" Stock Just Banked You 100%]( Current Open Positions: 65 Avg. 2018 Returns: 47.12% Trading [Drat - Only 90.91% With This Recommendation!]( Current Open Positions: 41 Avg. 2018 Returns: 25.82% IN THE MEDIA [Fed Chair Powell Hints at More Rate Hikes Than Planned and... Watch the full video here.]([37 Words That Signal the Beginning of the End (Again)]( Dear Total Wealth Reader, I watched intently as newly seated Fed Chair Jerome Powell delivered his first testimony to the House Financial Services Committee yesterday. For the most part, he said about what I expected in response to Congressional leaders, many of whom were clearly showboating for the cameras. It was hard to not waffle between feeling like I wanted to scream at the TV or yawn at the predictability of it all. Turn off the volume and the session would make a good substitute for Animal Planet. Then came Representative Carolyn Maloney's (D-NY) question about what could cause the Fed to raise rates more than the 3X that the Fed's most recently issued guidance calls for. Powell wasted no time stepping in "it." I don't know whether that was intentional or he simply made a rookie mistake. Either way, that really doesn't matter much in anything other than an academic setting (which is of course what the Fed is) or a political talk show. --------------------------------------------------------------- [You wanted something better from us (well, here it is)]( We've gotten your letters... We've heard your complaints, loud and clear. You want something BIGGER from us... Something that could make you SUPERIOR returns... in just DAYS... A service that is better and bolder than any initiative we've undertaken so far... Well, here it is... [Watch this]( and you'll thank me later. --------------------------------------------------------------- Yields jumped to fresh highs and stocks marched sharply lower in minutes when Powell made the case for more the possibility of more rate hikes than forecasted saying in classic Fedspeak that, "each of us [meaning FOMC members presumably] is going to be taking the developments since the December meeting into account and writing down our new rate paths as we go into the March meeting, and I wouldn't want to prejudge that." Uh-oh. I've been watching global markets for 35 years and I knew right away what Powell meant because I have a functional PhD in interpreting FedSpeak and applying it to financial markets - not literally, of course, but figuratively. FedSpeak, in case you're not familiar with the term, is what traders euphemistically call the highly specific, ultra-confusing to the public, language used by Fed Chairpersons (specifically) and Fed Governors when they are making public commentary or, as was the case here, appearing in front of lawmakers and TV cameras. FedSpeak typically has no bearing on reality and is used most frequently when the person being questioned does not actually want to answer the question being asked or simply hopes the level of technical detail will overwhelm the questioner to the point where he or she moves on. In exceptionally rare cases, FedSpeak is actually used to communicate. [CRUCIAL] [Fed Chair Powell Hints at More Rate Hikes Than Planned and...]( All sarcasm aside, imagine asking a five-year-old... ...what happened to all the cookies in the cookie jar? A fluent FedSpeaker might tell you... ...the preponderance of demand led to an asymmetrical increase in consumption prior to the regularly scheduled data point associated with evening intake production and delivery. The five-year-old would have simply said, "I got hungry and had a snack before dinner." I'm exaggerating to make a point, of course but, sadly, not by much. You and I would have answered Representative Maloney's question saying simply, "the economy is growing faster than we expected so it's very likely that we may have to raise rates more frequently than we (the Fed) told you (the public) at the end of our last meeting." --------------------------------------------------------------- [The news on this tiny $2 million company just got even better (be ready for Monday's Opening Bell)]( History is in the making right now, and if you want a piece of this unprecedented action, you need to [move fast](. You see, the U.S. Department of Energy is set to unlock a [new $7 trillion energy sub-niche]( right here in America - and insiders have already gobbled up two of every three available shares in the company sitting at the center of this frenzy. It's a tiny $2 million company holding crucial patents - and they could see an incredible 59,850% revenue-surge hit in no time flat. This is poised to create a slew of brand-new millionaires - but time is running out for you to join them. [Go here now to find out how to make your move](. --------------------------------------------------------------- What Raising Rates More Than Expected Looks Like Heading into his testimony, December Fed meeting notes called for three rate hikes in 2018. Since then the economy has strengthened further - forcing the Fed to reassess its models. Jobs data, housing, consumer optimism... all are sharply higher which means, presumably, that inflationary pressures are building. I believe we'll get four, perhaps even five, rate hikes and I say that because real inflation - meaning what you and I experience in our wallets - is running at double or even triple the official rates calculated by the Beltway Boys. Simply put, there's some catching up to do. That'll mean more volatility ahead as the "game" continues and the news outlets dissect each new comment from Fed officials in excruciating detail. However, I'm not particularly worried unless rates top 4.5%, at which point all bets are off. Don't get me wrong, though. We all know that endless stimulus and "accommodative" policies will end badly. That's beyond debate because there has never been a recorded instance in market history where rising rates have not ultimately led to a market correction. The only questions are when, what causes it, and what do you do in the meantime? The "when" is straightforward. The average recovery cycle has been 44 months over the past 60 years during which time there have been three massive shifts in financial engineering, debt, and leverage from the 1980s to 2000, according to Bloomberg data. The average number of months from the first rate hike to the next recession is 33 while the average 5 year real economic growth rate has been 3.08%. Simple extrapolation means we're on track for mid-2019. Interestingly, I first identified that date range based on cycle work I did related to the Internet Bubble nearly 20 years ago. Frankly, I didn't expect that and was surprised when I dug out my notes - but that's a story we'll continue another time because clusters of data points are often significant in their own right. [CRITICAL] [See How I Showed My Readers 520% Average Total Gains Per Week]( Anyway, what matters most for purposes of our discussion today is that mid-2019 is when the Fed's targeted rates, real growth, and the 10-Year Note potentially align causing both another serious correction and a recession at the same time. You can see that relationship very clearly in the following chart - which I've annotated to make my point. Source: realinvestmentadvice.com That's why the markets pitched a fit - Powell's plans to possibly raise rates faster and more often than expected brings us closer to the nexus. I wouldn't blame you one iota if you want to run for the hills just now. However, that'd be a serious mistake. Corrections start when the last buyers have arrived at the party. There's usually a massive spike higher as money chases hope, which springs eternal in only two places on earth I'm aware of - Las Vegas and the New York Stock Exchange. --------------------------------------------------------------- [I only care about one thing (the chance to get rich)]( The future of America's retail sector is a wasteland of rocks, dirt, and concrete - and the death of this sector is all but imminent. But retail's impending downfall could lead to your chance to collect the [biggest payday you've ever seen in your life](. In fact, you could cash in from retail's unstoppable demise from now until the end of time. Soon, you could be profiting on retail's demise with tens of thousands of dollars (or more) from these decrepit stocks. [Go here for all the details](. --------------------------------------------------------------- So now what? First, the real story is still growth, growth, and more growth. That's why you can ignore most of the verbal judo you're going to hear in the months ahead about rate hikes, how many points, when, etc. Second, invest only in short and mid-term bonds. That will help you get around most of the volatility that's going to plague income related bonds and bond funds. And, third, continue to play offense even as you invest defensively in companies that can hedge inflationary pressures. Right now that's big defense, big tech, and big medicine - like the two companies I'm recommending in the hot off the presses March edition of the Money Map Report scheduled to go live tomorrow! [Click here]( for more information. The key to getting through a correction you know is coming without losing your asteroids is something we talked about in last weekend's [Total Wealth Weekend Edition]( - "no sudden moves." To paraphrase something Warren Buffett once said: "if you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes." I will be with you every step of the way. Thanks for being part of the Total Wealth Family and for the trust you place in me. Until next time, Keith Fitz-Gerald Chief Investment Strategist --------------------------------------------------------------- More from Keith... [What a 10-Year Yield at 3% Really Means for Your Money]( I'd like to talk to you about the 10-Year Note and, specifically, why you're hearing so much about it lately. Teetering around 3% has some traders "on edge"... or so the headlines read. That's not a reason to get uptight, though, and I want to show you how you can profit from this conventional misunderstanding. [[Here's how](] What Wall Street Is Desperately Trying to Hide About These Wild Markets Everything you've heard about the stock market's violent moves this past week is wrong. What's really wrong is how hardly anyone knows what's wrong, and the handful of people who do know aren't being honest. Shah Gilani is going to tell you something you aren't going to hear or read anywhere else: the truth about what's wrong with stock markets, how they got to be so dangerous, and how to trade this new reality. To get Shah's latest report - and to sign up for his free, twice-weekly Wall Street Insights & Indictments - [click here](. [What to Do If Art Cashin's Right (About Another Correction)]( Wall Street veteran Art Cashin is one of those guys you want to pay attention to. He told CNBC's "Squawk on the Street" that there's probably a "35% chance that we still have to retest earlier lows from a week and a half to two weeks ago." What really matters, though, is what Cashin said next. [[Full Story](] --------------------------------------------------------------- In Case You Missed It... [See how the slow extinction of this sector could hand you a profit beyond your wildest dreams]( [Dreadful Chinese weapon revealed (this is HUGE)]( [Oil Is Caught in a Death Spiral - New Fuel Set for Global Takeover]( [These tiny Canadian pot stocks have enormous profit potential]( --------------------------------------------------------------- Share [Facebook]( [Twitter]( [More...]( mailto:?subject=Keith%20Fitz-Gerald's%20Total%20Wealth%20Research&body=Check%20out%20http%3A%2F%2Fwww.totalwealthresearch.com%2F --------------------------------------------------------------- You are receiving this e-mail at, {EMAIL}, as a part of your free subscription to Total Wealth. 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