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Hot Explosive Breaking News : N e x t !
Sunday August 16, 2015
by Andrew Snyder, Editorial Director, The Oxford Club
Sunday, August 16, 2015
Did China just put the last nail in the interest rate coffin? Did its move last week erase the idea that interest rates will ever return to “normal” in our lifetimes?
I have no doubt Janet Yellen’s head slammed the table in frustration last week. As China devalued the value of its yuan, Yellen’s job got much, much harder.
In fact, we’d argue the global economic picture has never been quite so muddled… and quite so dangerous.
What has us worried is the growing gap between monetary policies across the world.
We’re convinced the traditional idea of interest rates, at least in our investing lifetimes, is dead. As much as Yellen and her troops want to nudge rates higher and reload their ammo belt, divergent forces from across the globe are forcing them to move cautiously.
The news out of China last week is a perfect example
As Beijing works to decouple its yuan from the rising dollar, it puts an even brighter spotlight on the rising dollar. The greenback is an oasis in a monetary desert.
It’s not good news for Yellen. After all, if she pushes rates higher, it will be the equivalent of pouring gas on an already hot fire. While most other economies are working to slash the value of their currencies, the Fed is ready to overtly strengthen the value of ours.
It’s dangerous.
Yes, 87% of our economy is domestic. But if you’ve paid attention to the recent earnings reports from the multinationals that have teased this bull market forward, you know a strong dollar is cutting into profits.
Everywhere we look, companies are griping about a strong dollar.
For example, Apple (Nasdaq: AAPL) shareholders should absolutely be concerned over what happened in Beijing last week. With China acting as the company’s second-largest market (after the Americas), the falling value of the yuan could instantly shave several percentage points from Apple’s profits.
It’s not good news for a market leader that’s already starting to sputter.
And Apple’s not alone.
Beer giant Molson Coors(NYSE: TAP) felt the pain of a strong dollar – its European sales dropped nearly 17% over the last three months.
Its stock is now in a downtrend, too.
And shares of Fossil(Nasdaq: FOSL) sank by over 8% between Tuesday and Wednesday as the company warned about the effects of the strong dollar.
For the folks at the Fed who are already worried about an anemic recovery, the strong dollar is an itchy thorn in the side. If they raise rates and send the dollar even higher… they’ll very likely send the value of many multinational companies lower.
They’ll kill the bull market. And they may strangle our recovery.
For that reason, we’re convinced the Fed won’t make any bold moves. We might see a token increase… but nothing more.
Even bigger, though, we’re convinced we’ve seen the death of interest rates as we know them. In our investing lifetimes, we’ll never see another period of “normal” interest rates.
Central banks across the globe have simply gotten themselves in a trap – a trap they can’t escape from without gnawing their own leg off.
What’s an investor to do?
You’ve accomplished the first step. You’re aware of the situation… and the dangers it poses.
From here, you must invest according to the threat. With interest rates remaining low, you’ll need to find safe dividend income. That means largely focusing on domestic companies.
Sectors that stand independent of the global economy will do well. Healthcare and technology are two standouts.
We’re not in panic mode. Far from it. After all, this situation has been building for over six years. But it is time to adjust.
It’s time to realize we may never see “normal” again.
Good investing,
Andrew
P.S. At this hour, the Central Bank of China and the Central Bank of Japan are totally exposed to as much as $7 TRILLION of ass backwards derivatives that will turn the ETF markets into a worldwide burial ground.
They are about to go hybrid in Hong Kong.
The International Monetary Fund (IMF) has warned German Chancellor Angela Merkel that the Deutsche Bank can not ‘Bail-Out’ itself and the nation of Greece using Spanish, Italian and Portuguese derivatives.
In closing, we can report that the U.S. Inspector General has reached out to U.S. Congressional investigators as well as U.S. Military courts reference major misconduct and obstruction of justice by FBI Division 5 as well as the FBI on the whole, along with its Director James Comey, in an attempt to destroy evidence and shield current Democratic presidential candidate, lifetime loser Hillary Rodham Clinton.
Reference: The U.S. State Department has also been linked to this criminality by the U.S. Inspector General.
We can also divulge that Hillary, along with her husband “Billary”, are using various reporters at Bloomberg News to put out disinformation as well as threats and blackmail against possible future Democratic presidential candidates that would be a threat to Hillary receiving the Democratic presidential nomination.
Note: The threats are not directed against loser Joe Biden.
Stay tuned. NESARA- Restore America – Galactic News
Source: http://nesaranews.blogspot.com/2015/08/hot-explosive-breaking-news-n-e-x-t.html
Ok I guess I understand to buy apple when it goes down to $10 a share. Makes sense I guess.???
Eat More GMO
I love to smear GMO ‘S on my face.
Exports ‘n’ Imports Collide ~ Complex Pointless Torrid
There is ONLY ONE WAY, and that is through Jesus/ Yashaya. Please accept Christ into your heart and repent of your sins. Admit that you are a sinner and do everything you have within yourself to turn away from those sins. Jesus/Yashaya will not let you go once you give yourself to him. He sacrificed himself for ALL of us. Of course its not always easy. Ephesians 6:12 ” For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places”. Accecpt the way of the light, grow your faith in Christ, stand in your faith. These are the last days and WE MUST FIGHT FOR OUR SOULS! Love you ALL! GOD bless and may he have favor with us all!
Well, thank you for your well-intentioned thoughts, but the biblical messiah is not Jesus, or Yeshua, or Yashaya, his name contains the Father’s name, (IAUE in paleo hebrew vowels) which is Yah, the first syllable of his name is YAH
Yahushua. Shortened form, Yahshua.
That is the only name we should be honouring. None of these erroneous, dangerously-connected other names will please the Father, Yah, (Iaue) or his Right Hand Man, Son, Word, Messiah, Yahshua. You are correct, these are the last days, and we must fight for our very eternal lives, and the battle is raging right now, more than before, because Satan the adversary knoweth his time is short. May IAUE bless you for your good attempt at spreading the truth, and help you to learn all that you need to know, before you need to know it.
There are two books or three you should read, if you can at the first chance: Come Out Of Her, My People, by C. J. Koster
The Two Babylons, by Alexander Hislop
The Sacred Name Yahweh, by R. Clover.
They can all be seen free on the internet, I will get the urls for you tomorrow if you like. May you and your loved ones be blessed by the Spirit of Yahueh, (IAUE) which is being rained down upon all flesh now.
May IAUE be with you all, for all of us need His supernatural, all-powerful aid in this time.
You lost me at: “They’ll kill the bull market. And they may strangle our recovery”. Recovery??? B/S Bull market??? Sorry. Phoney-baloney… Sorry Tom.
I know this much about the Chinese and their famed money-grubbing characteristics. They WOULD NEVER EVER devalue the yuan unless it meant devaluing the dollar sometime in the future.