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There's no sugarcoating it - things were pretty brutal for stocks last week. After the Federal Reserve's decision to hike interest rates by 50 basis points, there was a short rally Wednesday followed by one of the worst trading days in 2022 so far.
And the downward trend is going to continue until the Fed eventually (and inevitably) changes course. The reality of it is, the factors that are sparking the inflation we're seeing now are vastly different from the last time this happened in the 1970s, and therefore, the Fed's solution isn't really going to fix the problem.
Raising interest rates isn't going to cure COVID-19. Higher rates won't solve supply chain issues. Or produce more semiconductor chips, or corn, wheat, soybeans, rice, beef, or oil.
It will, however, tank the bond market and the stock market, and there's just no way the Fed will allow that to happen. Which means they aren't going to raise rates to the levels actually needed to slow demand and bring prices back down.
The best way to protect your money right now is to stick with what's working, with the tried and true companies still making great earnings and turning profits.
I've got just the plays for you - three oil stocks, which are all making hand-over-fist money right now, and one insurance company whose 2008 scandal has resulted in a huge turnaround that's put them back on the board as a must-buy.
Check out this video for the tickers...
It's more important than ever for investors to find solutions that can help counteract the volatility we've seen this year. As interest rates rise and the market teeters, banks are one area where investors are taking refuge.
But we've identified two other key market sectors where a new flood of buying is going to create opportunities for potentially massive profits, especially in small-cap stocks that often get overlooked by the major players.
I have a strategy to narrow thousands of these stocks down to the few with the biggest potential to be the next market winners.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.