Be Very Wary of This June “Market Rally!” Inflation will soon be Overtly Noticeable

Dear Reader:The Dow Jones Industrial Average is on track to post its best June since 1938! This June “rally” is one we should watch carefully. The truth is, it’s not really a rally at all in the sense of the word. It’s the stock market’s reaction to the central bank’s swift pivot back to “easy money” policies.

What could possibly go wrong? Well, in a word, EVERYTHING! When the Federal Reserve cuts rates, and it looks like they will do that at least once before the end on 2019, the easy money policies that help prop up “zombie corporations” will make it feel as thought things are getting better. But we all know from the kicks to the pants life has given us, that feelings are not an accurate gauge of reality.

The Fed, realistically, could even cut rates twice this year…maybe even three times. James Bianco of Bianco Research says there will be four cuts this year alone. And he believes the stock market will eat it up because the stock market loves rate cuts. “Trust the market. It wants a lot of rate cuts. It’s been saying that for months,” Bianco told CNBC. “They’re saying, ‘Look, you’ve got room to lower rates. Lower the cost of capital and maybe provide more stimulus without the fear of inflation. So, do it.’”

But for the everyday American, inflation is already happening. Whether it’s being reported on or not, is really the only thing up for debate. Anyone who’s bought their own groceries in the past few years has likely noticed their bill has gone up significantly. I know I have! Inflation is happening and cutting rates will only make it worse. The dollar will be on the edge of collapse if the Fed takes it too far, which won’t be difficult to do.

Retailers are already worried about the trade war, and as so many retail establishments close due to an inability to make ends meet in the business world, the tariffs could push others to jack up the cost of their goods. That will also contribute to inflation.

I’ve often wondered how the Fed and the media, and the government are getting away with selling the “no inflation” narrative to the public, when anyone with bills to pay and food to buy can see it’s nothing more than a farce.

I recently warned everyone to take steps to protect their wealth from runaway inflation and the devaluation of the fiat dollar. Based on the information, I stand by that, and suggest preparations be made sooner, rather than later.

Inflation is often referred to at the “worst tax” because most people don’t notice it. They are all far too busy voting to tax their neighbor into poverty while the central banks rip them off quietly and with impunity. Take the time to diversify your assets, buy some gold or silver, and get your liabilities in check (pay off debt/liabilities). If this thing goes belly up, and it will eventually, the only thing worse than having a dollar will be owing someone a dollar.

Protect your wealth my friends! Inflation is not only here, it’s about to get worse!

Best Regards,

James Davis
FutureMoneyTrends.com

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