😱 Is the Fed on the Path to Making a Huge Mistake? 😱

Good morning. History may not repeat itself, but it does rhyme. In 1994, the economy was showing.. It’s the monthly jobs numbers today and they’re not going to be pretty and will be possibly the tip of the iceberg as we head into May. [Trading Tips] Good morning. History may not repeat itself, but it does rhyme. In 1994, the economy was showing rapid growth and signs of higher inflation. Back then, the Fed was willing to quickly raise interest rates. Now, with similar signs of growth and inflation, the Fed is talking about potentially raising rates in about 18 months. And it’s buying billions of dollars of bonds each month, something the bank wasn’t doing in the early 1990s. In other words, we may have seen this exact scenario before. While the Fed’s policy in the 1990s eventually became accommodative and helped fuel the tech bubble, at the time, raising rates allowed inflation to fall. Time will tell if inflation rates slow on their own as the economy reopens and fiscal stimulus comes to an end, but the prospect of higher inflation will likely continue to weigh on markets. Now here's the rest of the news: Sponsored Content [Read This Before You Invest In Lithium!]( The old way of lithium mining won't meet booming demand... and this one company has the solution: [Read THIS Now!]( MARKETS DOW 33,876.65 +1.76% S&P 4,224.70 +1.40% NASDAQ 14,141.48 +0.79% *As of market close • Stocks rallied for a second day in a row, with the Nasdaq hitting an all-time high. • Oil dropped 0.8 percent, closing at $73.08 per barrel. • Gold declined 0.3 percent, hitting $1,778 per ounce. • Cryptocurrencies dropped heavily but then recovered, with Bitcoin last at $32,588. Today’s TOP TIPS [This Tech Infrastructure Play Offers Growth and Value]( With traders uncertain as to the market’s next move, a great way to find opportunities is to look for the best values in each sector. For big tech, only a few companies look attractive now. That’s because the market rally of the past year has led to a high valuation in terms of earnings, sales, and other traditional measures. However, some values remain, particularly in a company that largely sat out the rally and can move higher. » [FULL STORY]( [Insider Trading Report: Vista Gold Corp (VGZ)]( Douglas Tobler, CFO of Vista Gold Corp (VGZ), recently picked up 2,500 additional shares. The buy increased his stake by 3.2 percent, and came to a total purchase price just over $3,100. This is the CFO’s third buy of the year. Other company insiders have made no changes to their holdings in either way since mid-2019. Before then, company insiders were likely to be heavy sellers of shares. » [FULL STORY]( [Unusual Options Activity: Devon Energy Corporation (DVN)]( Shares of energy giant Devon Energy Corporation (DVN) have seen shares rise steadily higher over the past year. One trader sees the potential for a further move higher. That’s based on a number of trades. The most interesting is the January $35 calls. With 212 days until expiration, over 22,580 contracts traded against a prior open interest of 271, for an 83-fold rise in volume. The buyer paid about $1.92 for the contracts. » [FULL STORY]( IN OTHER NEWS • [Powell Confirms Fed’s Inflation Stance]( Federal Reserve Chairman Jerome Powell testified before a House panel on Tuesday. He cited the bank’s response to the coronavirus outbreak, and made the case for continued monetary support, even as inflation numbers have started to run on the high side of the bank’s preferred policy. The central bank has a fine line to walk to curb inflation without killing the economic recovery. • [Quit Rate Hits 20 Year High]( A record number of workers are quitting their jobs, with the total hitting 4 million in April. Employees are looking for new opportunities as a labor shortage has fueled wage growth. And with many states still offering extended unemployment benefits, there’s little rush for workers to obtain a new job right away, allowing them the ability to pick and choose a better one. • [Blackstone Buys Home Partners of America]( The Blackstone Group (BX) has made an offer to buy Home Partners of America, a firm that owns 17,000 houses throughout the US and rents them out. The deal is valued at $6 billion. Blackstone was also a buyer of rental homes after the housing crash, building a portfolio of tens of thousands of homes before selling them off. • [GameStop Raises $1 Billion in Share Sale]( Video game retailer GameStop (GME) has completed a 5 million at-the-market share offering. The company reports it has raised $1.13 billion, which will be used to retire debt and accelerate growth. The announcement led to a jump in shares, which still remain far higher than where they started the year, but well below the retail-buying driven high of late January. • [Mollie Hits $6.5 Billion Valuation]( Mollie, a Dutch payments startup firm, has raised another $800 million from investors, and is now valued at $6.5 billion. The company is expected to process nearly $24 billion in payments this year, doubling what it did in 2020. The company also reports that it’s adding 400-500 customers per day, as customers shift from physical payments to digital ones. S&P 500 MOVERS TOP LB 5.016% ETSY 4.21% CTAS 3.228% TWTR 2.937% TSCO 2.885% BOTTOM IRM 3.527% EVRG 2.872% KIM 2.188% CCL 2.218% RCL 1.991% Quote of the Day The headwinds are building for the equity market. The Federal Reserve has got to switch gears here because the economy is so strong… Inflation is going to be higher than it was pre-pandemic. The Fed has been struggling for at least a quarter of a century to get inflation up, and I think they’ll be able to get that. - Mark Zandi, Chief Economist at Moody’s Analytics, on why he expects inflation expectations to rise, and why markets may correct 10-20 percent as rising inflation expectations play out. Sponsored Content [Joe Biden's War On Oil Fuels Lithium Explosion]( World powers are fighting over valuable lithium resources. Here's how one European company may win. [Get Your FREE Report Here]( Not sure the best way to get started? Follow these simple steps to hit the ground running. › Step #1 - Get These FREE Reports: [Warren Buffett's Top 5 Stocks]( | [10 Great Stocks Under $10]( | [7 High Yield Dividend Stocks]( › Step #2 - Join Our Premium Advisory: [The Next Superstock]( › Step #3 - Claim Your Free Copy Of: [Big Book Of Chart Patterns]( | [How to Trade Weekly Options For Weekly Income]( Nothing in this email should be considered personalized financial advice. 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