They did it again.
In July, the Federal Reserve cut interest rates by 25 basis points. Then earlier this week, it cut rates by another 25 points.
What’s more, the Fed’s report highlights “uncertainties” and leaves the door open for even more rate cuts later this year.
This is all eerily similar to what happened in 2007. After keeping rates steady for a while, the Fed cut them in September, October and December of that year.
We all remember what happened next: Rates went lower … and lower … and lower … until they reached zero. And the S&P 500 Index plunged 55% as the financial system completely collapsed.
The Fed knows there’s a crisis brewing. Do you have a plan for it?
- The Fed is undecided on how bad the economy really is. Quote: “There was a little bit of dissent. Two of the governors wanted to cut by 50 basis points. And a 50-basis-point cut … that would mean a big deal is happening somewhere.”
- Why the market was strong at the beginning of 2008. Quote: “You know what happened later in 2008: The whole world collapsed. But for six months, there was no impact on the market.”
- How President Donald Trump could help the stock market. Quote: “If the market begins to weaken, that puts pressure on the administration to do something. And again, it wouldn’t take much. As we’ve seen before, even sometimes just a positive tweet or two can suddenly get the market moving in the upper direction.”
To watch today’s six-minute Market Insights video now, simply click on the image below:
One particular opportunity Jeff is focusing on right now is a little-known retailer that has grown its revenue and profits every year since 2011. Throughout its 20-year history, it has survived — and thrived — during recessions.
Jeff says: “I think it’s our most promising stock yet. It’s a retailer that’s still in its very earliest phase of growth, and its most explosive period of profit gains is still ahead. So, this is a great time to own the stock.”
All it takes is one incredible stock like this to turn a small investment into a million-dollar windfall. For more info on Jeff’s strategy, click here now.
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And remember to scroll down for a wrap-up of this week’s Sovereign Investor Daily articles.
Assistant Managing Editor, Banyan Hill Publishing