Blog : The Approaching Relief Rally

by Peter Leeds on September 9th, 2015

 
Spoiler Alerts:
 
In our opinion, you will soon see a few events which we delineate here, and we discuss the potential results from Federal Reserve action below:
  • silver prices are dramatically undervalued, and due for a pop in the short term
  • oil prices will increase in the medium and long term
  • IF the Federal Reserve raises interest rates, we will get a short term relief rally
The Federal Reserve (FED) meets next week, at which point they could raise interest rates.  However, such a move is looking much less likely, with many anticipating the rise to instead come in December.  Others still do not anticipate an increase in rates until 2016.
 
We explain many ways this will affect you directly in this quick video...
 
 
Given the global economic weakness, the collapse in commodity prices, and fiscal issues here in America, any rate hike, no matter how small, will put pressure on businesses to pay their outstanding debts.  It will increase the cost to borrow (mortgages, car loans, credit cards, etc...)
 
A more likely scenario in our eyes would be further Quantitative Easing, which is what artificially "powered" the stock market higher last year, and it will do the same thing again.  While not good for the health of our capitalist economy, it will be excellent for most publicly-traded shares.
 
However, whenever the FED does get around to lifting rates off of their years of historically low levels, you will see a relief rally.  As we mentioned before, one thing the market hates more than bad news is uncertainty, and by removing all the confusion and contemplation of when the FED will act, they instantly vaporize the questions.
 
In addition, the anticipation of a rate increase is widely expected, and thus "baked into the pie."  No one is going to be surprised by it.
 
Whether this month, or at the FED meeting in December, or in 2016, or even years from now, whenever we get "lift-off" in rates, we will also see a pop in prices of stocks.
 
IF the rate increase happens this month, or even in December, it will put pressure on an already uncertain market.  This will make it increasingly important to select specific stocks, rather than entire index funds, baskets of stocks, mutual funds, or most of the shares on the market.
 
You will only see profits from certain types of companies, and these are the exact kinds of penny stocks our team is watching very closely, and revealing to subscribers along with buy and sell opinions, in both the short and long term.
 
 

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