We are on the verge of a massive sea change in the market.
One that could completely transform the financial markets for the next five years – or more.
I'm talking about the downfall of the easy money market.
If you've been following along at The 10-Minute Millionaire, you know that I've talked about market narrative – the overarching theme that drives market action – and how that narrative is changing.
But that is just one piece of the "easy money" puzzle.
As you'll see in a moment, this shift has been in the works for nearly 10 years, and when it begins, it will bring about a very different market… one that is more volatile… more indecisive.
For the investors who don't prepare and go about their business as usual, this could spell disaster for their hard-earned wealth.
But I'm going to make sure that doesn't happen to you. Even more, I'm going to guide you so that you're prepared for all the challenges and opportunities coming our way.
That's just what I did in 2008, when I saw the financial crisis coming a mile away. Not only did I write about the coming crisis, I positioned my clients to be safely in cash for a large part of it.
And since then, I've correctly called big market moves – and helped a lot of people make a lot of money – because I understand what governments and central banks have done over the last eight years to keep the economy moving and keep the markets afloat.
In short, during some of the toughest markets in history, I helped my clients protect and build their wealth.
And I'm ready to do that again. But this time, I'm working for you.
Over the coming weeks, I'm going to show you how we can turn the coming chaos into countless opportunities to profit…
But before that, you need to understand how we got here – because that's crucial to understanding the downfall of the easy money market.
And that's exactly what I have for you today…
Enter the Biggest Financial Engineering Scheme in History
In order to prepare for the downfall of the easy money market, we have to go back to 2008, to the depths of the financial crisis…
You probably remember what happened: trillion-dollar bailouts, fiscal stimulus, and "free cash" monetary policies from governments and central banks around the globe.
Whether you agree with them or not, all of these prescriptions not only dragged markets away from the edge of the financial abyss, but also kicked off one of the longest bull markets in history.
The Dow peaked in October 2007 at over 14,000. Then it started a slow, steady decline until October 2008, when it absolutely tanked. The Dow finally hit a trough of 6,470 in March 2009.
In the eight years since, we've seen the three major market indices advance 233.57% (Dow), 262.73% (S&P 500), and 392.84% (Nasdaq).
This remarkable bull market was engineered by the U.S. Federal Reserve, which created money out of thin air to keep the system liquid. The Fed bought up billions of dollars in toxic assets from failing institutions as well as trillions in government bonds and mortgage securities, pushing fresh money out to the country's biggest financial institutions, money that then made it back into the system through lending and other efforts.
Buying tens of billions of dollars' worth of bonds every month adds up – to a cool $3.7 trillion (give or take a few billion) between 2009 and 2014.
Right now, the Fed's balance sheet – the assets on its books – sits at a whopping $4.5 trillion.
Together with almost a decade of near-zero interest rates, that additional $3.7 trillion has been propping up U.S. equity markets since the financial crisis.
But it can't continue forever.
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.