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.
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This Fed balance sheet has already caused distortions in the stock, bond, and housing markets. Keeping the balance sheet at its current level would increase the risk of actually destabilizing one or more of those markets. It would also add fuel to the fire when inflation starts to tick up again.
Eventually, the Fed is going to have to "empty the vault" and trim those assets from its balance sheet.
And when it does, it's going to drain $3.7 trillion from the financial system while it continues to normalize interest rates.
And that's what's going to trigger the downfall of the easy money market - the systematic unwinding of the biggest financial engineering scheme in history.
Make no mistake - this will remake the entire investing landscape, influencing every single trade - from the high-volume lots moved by institutions and high-frequency traders all the way down to the single shares bought and sold by individual retail investors.
This is not hyperbole. This is not a drill.
For the past several months, the markets have quietly ground higher on the cautious optimism afforded them by the economic growth agenda of Donald Trump.
But that - and everything else that has characterized these markets for the last 10 months - is about to change dramatically.
And it's going to create the most explosive, unpredictable trading environment the markets have witnessed since the 2008 financial crisis.
You need to know what's coming. You need to be ready to act.
And you need to listen up...
The markets of the next few months are going to be the most explosive and the most unpredictable - in short, the most volatile - markets we've seen since 2008.
But this isn't the time to head to the sidelines. Quite the opposite.
Whether that chaos takes the shape of a major selling panic or a huge rally doesn't matter in the slightest.
Because I'm going to show you how to make money no matter what.
At its core, our system is designed to thrive in any sort of market.
By squeezing out emotion, filtering out the noise, and maximizing the potential for profits, our system is able to sidestep any roadblocks the market might put in our path toward millionaire status.
And as we approach the Fed's pull-the-trigger date for killing off the easy money market, I'm going to tell you:
- What the Fed (or central banks) is most likely to do next
- How those moves are going to impact the markets
- What you can do to protect your wealth
- How you can rake in big profits
Together, I'll help you gain the mindset, the tools, and the system you need to become a true 10-Minute Millionaire until you have all the knowledge and concepts needed to pilot yourself on this journey.
So stay tuned.
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The post A Big Sea Change Is Coming; I'm Here to Make Sure You're Ready appeared first on 10-Minute Millionaire.
About the Author
D.R. Barton, Jr., Technical Trading Specialist for Money Map Press, is a world-renowned authority on technical trading with 25 years of experience. He spent the first part of his career as a chemical engineer with DuPont. During this time, he researched and developed the trading secrets that led to his first successful research service. Thanks to the wealth he was able to create for himself and his followers, D.R. retired early to pursue his passion for investing and showing fellow investors how to build toward financial freedom.