In yesterday’s FOMC press conference, Jerome Powell stressed that the Federal Reserve will be FORCEFUL, aggressive and PRO-ACTIVE, until they are certain the storm is behind us. He also underlined that the Federal Reserve can only help companies that are CREDIT-WORTHY, which is another way of saying that loans will be made to big-wigs, not the little guy who needs it JUST AS BADLY, if not more.
This crisis, as well as all other previous credit expansions (1987, 2000, 2008, 2011 and 2013), shows us the reason that credit-based economies work BETTER for the already-rich.
The wealthy are just CLOSER TO THE PLATE.
Mark my words on this. The wealthy will prosper greatly from the lending facilities of the Federal Reserve, while the majority won’t reap its rewards.
The markets are rallying, since Jerome Powell is promising LIQUIDITY – as much as needed – which means A LOT.
But many millionaires are not SO SURE, which is the reason they are parked in cash, building a WATCH LIST (same as we have done) in case the markets catch up to reality and pull back again. Access our watch list HERE!
As you can see, companies are CONSERVING cash, since earnings are going to be DISMAL.
Powell is TRULY saying to the market something to the effect of, “I’m going to do everything I can, but the government must do MORE as well.”
What I did like was that Powell understands the importance of small business.
That’s a paramount statement from him, since it means that they’re going to focus on HELPING Main Street as well.
93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.
Wealth Education and Investment Principles Are Hidden From Public Database On Purpose!
Build The Knowledge Base To Set Yourself Up For A Wealthy Retirement and Leverage The Relationships We Are Forming With Proven Small-Cap Management Teams To Hit Grand-Slams!
We’re all taking a hit during the pandemic, in order to promote the greater good.
Powell wasn’t sugar-coating either. Again and again, he stressed that the PAIN IS COMING!
My assumption is that we will continue to see more lending done, but I expect the government to be EVEN MORE ACTIVE in the months ahead, since the problem is really a combination of how to keep society productive and how to develop and grow out of this.
This is a REMARKABLY UNIQUE recession, since there’s a vibe from the top down that no one did anything wrong, so as a collective we must HELP EACH OTHER.
It will be interesting to see how this whole thing plays out.
In the meantime, Gilead Sciences looks to be on the verge of cracking a cure for Covid-19, which will alleviate MUCH OF THE RISK from the dreaded 2nd wave and from the re-opening.
This upcoming Sunday, we will cover the important progress made on the medical front, as well as what to expect as we enter the month of May and many countries are getting back to normal.
The panic looks to be OVER.
Research Partner, PortfolioWealthGlobal.com
Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!
Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
We are not brokers, investment or financial advisers, and you should not rely on the information herein as investment advice. If you are seeking personal investment advice, please contact a qualified and registered broker, investment adviser or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Please do your own research before investing, including reading the companies’ SEC filings, press releases, and risk disclosures. Information contained in this profile was provided by the company, extracted from SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it.
Please read our full disclaimer at PortfolioWealthGlobal.com/