Archives for September 2016

If Janet Yellen raises rates in December, it will likely be so the Fed can cut them again shortly thereafter.

It makes sense – official U.S. debt tops $19 trillion (and rising fast). Unfunded liabilities take the total to nearly $127 trillion. Raising rates by just 1% would cost the Fed unfathomably more in additional interest that comes right from the federal budget.

Were it to hike rates, the central bank would cut its own feet off, too. The Fed's bond inventory is so massive, Goldman Sachs estimates it would take a $250 billion haircut on a 1% hike.

So I feel pretty confident that we won't see anything but a token increase – if that – anytime soon.

So, now more than ever, investors need to find a nice, secure source of yield among the slim pickings available; something with the wherewithal to hold up under uncertainty and change.

I'm going to show you the best one I know. And the best part is, its "secret ingredient" is more than powerful enough to overcome any interest rate hike, whether it comes from the Fed or the market.