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April
23
2021

Bond Market Troubles Will Take Away The Fed’s Printing Press
Adam Taggart

And it will happen this year, predicts money manager Bill Fleckenstein

Those cheering today’s sky-high asset prices say they don’t worry because “the Fed has the market’s back”

And they haven’t been wrong to-date. There’s no doubt that the Fed’s $trillions in monetary stimulus has pushed the prices of stocks, bonds, real estate and nearly every other asset class to all-time highs.

But the Fed’s ability to print money with impunity may not last forever. In fact, veteran money manager Bill Fleckenstein warns it could end this year.

And Bill isn’t alone.

61% of business economists say inflation risks are the highest they’ve been in two decades, and 46% of members surveyed by the National Association of Business Economists predict the Fed will be forced to hike interest rates sooner than it’s currently forecasting:

Economists say inflation risks highest in two decades and could force Fed to raise interest rates in 2022 (MarketWatch)

March 22, 2021 at 12:54 p.m. ET

61% of business economists say inflation risks highest in two decades

Federal Reserve leaders keep saying they don’t plan to raise rock-bottom U.S. interest rates for several years, but a growing number of economists think a speedier recovery and high inflation will force the central bank to act more quickly.

Some 46% of members surveyed by the National Association of Business Economists predict the Fed will lift a key short-term interest rate in 2022, at least a year before the central bank itself expects it will do so.

(Source)

Bill predicts that such forced tightening by the Fed will throw today’s stimulus-addicted markets into anaphylactic shock, resulting in a heck of a lot of losses.

Which is why he agrees that now, more than ever, is the time to partner with a financial advisor who understands the nature of the market risks in play as well as the opportunities, can craft an appropriate portfolio strategy for you given your needs, and apply sound risk management protection where appropriate:

Anyone interested in scheduling a free consultation and portfolio review with Mike Preston and John Llodra and their team at New Harbor Financial can do so by clicking here.

And if you’re one of the many readers brand new to Peak Prosperity over the past few months, we strongly urge you get your financial situation in order in parallel with your ongoing physical resilience preparations.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.

 

Adam is the President and Co-Founder of Peak Prosperity. He wears many hats, but his basic job is to handle the business side of things so that his fellow co-founder, Chris Martenson, is free to think and write.

Adam is an experienced Silicon Valley internet executive and Stanford MBA. Prior to partnering with Chris (Adam was General Manager of our earlier site, ChrisMartenson.com), he was a Vice President at Yahoo!, a company he served for nine years. Before that, he did the 'startup thing' (mySimon.com, sold to CNET in 2001). As a fresh-faced graduate from Brown University in the early 1990s, Adam got a first-hand look at all that was broken with Wall Street as an investment banking analyst for Merrill Lynch.

Most importantly, he's a devoted husband and dad.

 

 

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