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What Oil Needs to Sustain Its Rally

oil prices

Despite heroic profits reported by two of the FANGs - Facebook, Inc. (Nasdaq: FB) and Amazon.com, Inc. (Nasdaq: AMZN) - stocks had a very rough week.

The Dow Jones Industrial Average fell 230 points or 1.28% to 17,773.64 while the S&P 500 lost 26 points of 1.26% to 2065.30. The Nasdaq Composite Index lost 2.67% to 4775.36 as Facebook and Amazon sucked the air and much of the profitability out of the room in the technology sector.

The other half of the FANGs, Apple, Inc. (Nasdaq: AAPL) and Alphabet Inc. (Nasdaq: GOOGL), took it on the chin after disappointing investors, and Apple in particular is struggling with the laws of large numbers, a phenomenon that Amazon and Facebook will eventually have to deal with.

The overall market is still very expensive and three of the four FANGs (other than Apple) remain in a bubble.

But here's what I really want to talk to you about today...

The Best Investment When the Fed Turns to Negative Interest Rates

negative interest rates

Negative interest rates used to be a thing of central banking fiction.

Now it looks like our Federal Reserve is considering negative interest rates, too.

At a testimony before Congress on Feb. 10, U.S. Federal Reserve Chairwoman Janet Yellen said there was nothing to prevent the United States from adopting negative-interest-rate-policy (NIRP).

NIRP signals a lack of confidence in an economy to investors. When the Fed turns to negative interest rates, it will encourage investors to exit stocks and stockpile their cash.

Money Morning Resource Specialist Peter Krauth has the one perfect investment to protect your money against this disastrous monetary policy.

Federal Reserve's Plan "Won't End Well" for the Markets

Federal Reserve

At a meeting with Congress on Wednesday, U.S. Federal Reserve Chairwoman Janet Yellen reiterated the Fed's plan to raise interest rates in the months ahead.

But her words also showed a hint of doubt.

Yellen discussed several concerns about the economy that could make the Federal Reserve hesitate on the timing of rate hikes. She also reemphasized the Fed's willingness to experiment with controversial monetary policy tools, including negative interest rates.

Our Chief Investment Strategist Keith Fitz-Gerald made his usual appearance on CNBC to talk about why the Fed's experiments "won't end well" for the markets...

How to Profit from the Fed's Worst Mistake Ever


All of the bad debt that helped trigger the financial crisis was never written off, and there are now convincing signs that deflation, and not the Fed’s sought-after inflation – could break out soon.

The consequences of that could be disastrous, but there’s a “classic” inflation hedge that can work even better during deflation. Here’s how to profit from the Fed’s biggest mistake ever…

How the Fed Could Spark Even More Profits from This "Cashless Wonder"


Most media tuned out once it became clear the U.S. Federal Reserve wouldn't act to raise interest rates in September.

But in doing so, the media failed to report on some illuminating predictions from the Federal Open Market Committee's "dot plot" on where they think the Fed funds rate will be in the near, medium, and long term.

What the media didn't tell you was that an FOMC member actually predicted a negative Fed funds rate - for the first time ever in Fed history.

Have a look at these shocking "dot plot" predictions. They prove I made the right call back in May when I picked this stock. In fact, it's already up nearly 15%...

How We'll Capitalize on Fed Cowardice


Markets delivered a resounding Bronx cheer to the Federal Reserve on Friday after that confederacy of dunces failed to raise interest rates at its highly anticipated, two-day September meeting.

The Dow Jones Industrial Average plunged by 290 points (1.74%), while the S&P 500 followed by 32 points (1.62%), and the Nasdaq Composite Index dropped by 67 points (1.32%).

On the week, the Dow lost only 49 points, or 0.3%, to close at 16,384.79, while the S&P 500 shed only 3 points, or 0.2%, to end at 1,958.03. Both indices remain down on the year.

The tech-heavy Nasdaq managed to eke out a five point, or 0.1%, gain on the week to close at 4,827.23 and remain up on the year.

The Fed Just Brought a "Super Crash" Closer

dow jones industrial average

On Thursday the Fed blamed China for its policy paralysis.

This effectively expanded the Fed's dual mandate from trying to achieve full employment and price stability to trying to maintain global financial stability, but only succeeded in introducing more uncertainty to the situation.

And it gets worse. I want to show you why... and what I expect to happen now.

Will the Next Federal Reserve Meeting Deliver an Interest Rate Hike?

Federal Reserve

After weeks of anticipation, Thursday's FOMC meeting ended without an interest rate increase. That left investors speculating if a hike will come at the next Federal Reserve meeting.

It's entirely possible, as the U.S. central bank left the door open for a rate increase following its next two-day meeting on Oct. 27 and Oct. 28. At yesterday's press conference, Fed Chairwoman Janet Yellen said "October remains a possibility," in regards to a rate hike.

Here's what investors need to watch ahead of the next Federal Reserve meeting...

What the Fed Meeting Today Means for Stocks

The Fed

We're just hours away from Janet Yellen's 2:00 p.m. press conference, and investors are still in the dark on whether interest rates will rise following the Fed meeting today (Thursday).

U.S. markets were flat this morning ahead of the Fed meeting, with the Dow Jones Industrial Average down six points in early trading.

Investors are waiting anxiously, because the decision will have a huge impact on stocks...

Investors' Guide to Fed Interest Rates and the Upcoming Hike


Fed interest rates are about to increase for the first time in nine years. U.S. Federal Reserve Chairwoman Janet Yellen had hinted for months that the central bank finally was ready to raise interest rates above zero for the first time since late 2008.

Markets will react as new rates are decided, Money Morning Capital Wave Strategist Shah Gilani explained on Aug. 7. "Investors could panic. Because we're so close to all-time highs, any dip could turn into a sell-off as investors rush to book their paper profits."

Watch the following video for Gilani's prediction on the timing of a rate hike, plus get his profit-taking strategy than any investor can use to cash in when Fed interest rates climb...

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Will Janet Yellen Raise Interest Rates?

The Fed

The U.S. Federal Reserve began its two-day September meeting this morning (Wednesday), and investors are wondering whether Fed Chairwoman Janet Yellen will decide to raise interest rates now.

And even though we're just a day away from Janet Yellen's press conference - which will take place Thursday at 2:00 p.m. - we're still in the dark about whether an interest rate hike is coming.

Here's what investors need to know now...

Will an Interest Rate Increase Happen at This Week's FOMC Meeting?


An interest rate increase is the biggest topic for Fed officials during this week's two-day FOMC meeting on Wednesday and Thursday.

While many economists believe the Federal Reserve should hold off on raising interest rates this month, Money Morning Chief Investment Strategist Keith Fitz-Gerald says investors shouldn't assume the Fed will make the smartest decision.

He made his regular appearance on FOX Business this morning and explained the one reason why the Fed may still raise rates...

Keith Fitz-Gerald: "Federal Reserve Policy Is Past Its Prime, Ignores Middle Class"


Money Morning Chief Investment Strategist Keith Fitz-Gerald talked U.S. Federal Reserve policy with "Varney & Co." host Stuart Varney on FOX Business Monday morning.

Watch the video to see what Fitz-Gerald, a 33-year global market expert, predicts will come out of the FOMC meeting on Wednesday and Thursday (Sept. 16-17) - and why he's so fed up with Fed policy...

The Week's Big Story Isn't in Wall Street's Losses

stock market crash

After an "impressive" May jobs report, the Dow Jones Industrial Average (INDEXDJX:.DJI) ended its third consecutive week on a down-note, losing 56.12 points (-0.31%) on Friday while the S&P 500 (INDEXSP:.INX) also fell for the third consecutive week, dropping 3.01 points (0.14%) on the day.

On the week, the Dow lost 161 points or 0.9% to 17,849.46 while the S&P 500 fell 15 points or 0.7% to 2092.83. For the year, the Dow has gained a mere 26 points, far less than 1%, while the S&P 500 has climbed by 33 points or only 1.6%.

The NASDAQ Composite (INDEXNASDAQ:.IXIC) has done much better, ending the week basically flat at 5068.46; it is now up about 7% on the year as social media, biotech and tech stocks continue to rise.

Stay Away from This Irrational Indulgence

How to Profit

When I see the market rally mindlessly - as it did on Friday, after the jobs report pushed the jobless rate down to 5.4%- I ask myself a set of questions like the following.

Do investors really think it's going to matter if the Fed raises interest rates by a quarter of a point in September instead of June? Do they really think it's normal that €3 trillion of European debt is yielding less than zero? The Swiss National Bank (Switzerland's Federal Reserve) owns $100 billion of stocks...Is that considered normal?

I can't be any more direct than this - sometimes the plane hits the ground before people have a chance to parachute to safety. Investors trying to ride this market to the bitter end are going to find the end is bitter, indeed...