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The Fed has been delivering a consistent message that interest rates will remain "Higher for Longer" but the market hasn't believed it, until now.
In the last week, the bond market and yields have started to reflect the reality of the interest rate outlook.
Yields on the "Ten Year" shot up 5% since the last Fed meeting. Expectations for the first drop in interest rates have shifted to the second half of 2024, not this December.
With more than a Trillion dollars in commercial debt maturing over the next three years, the "higher and longer" is now an even larger problem for the real estate market.
And I've got your plan on how to turn this problem into profits with my latest Power Profit Trade video.
You can watch right here or by clicking the video below:
We're going to keep talking about the Fed's wearing down of the real estate market because this is a real problem we're facing over the next six months.
Powell's actions have unleashed a $21 trillion commercial real estate crisis that is spreading across the economy at a blinding pace.
It's already eviscerated $400 billion in wealth, spawned a flurry of bankruptcies, and prompted three bank failures.
Of course, this has been very bad news for investors hoping for smooth sailing.
But it's also been very good news for savvy traders who know how to play the downside.
In fact, my colleague, Shah Gilani, has been talking about what he calls Powell's "rate hike binge" for the last 12 months.
And he's already isolated seven specific targets you need to hit immediately.
Each of these plays are trading at about $1 a pop or less - which means the upside is staggering for folks who move fast.
So I'm going to hand it over to Shah from here to show you how you could play these seven trades to perfection.
The post The Grim Reality of the Fed's 'Higher-Than-Longer' Outlook appeared first on Power Profit Trades.
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.