S&P 500 Erases Trump Bump as Powell's 'No Hurry' Comments Shake Investor Confidence
The post-election market euphoria has come to an abrupt end as reality sets in, with the S&P 500 falling more than 2% last week and the Dow Jones Industrial Average shedding over 500 points. Multiple warning signals suggest this could be more than a temporary setback.
As the Fed continues to print money at alarming rates...
The value of your savings is plummeting.
Elon Musk warned, "We need to do something... or the dollar will be worth nothing."
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MARKET SNAPSHOT:
S&P 500 falls below post-election opening levels
Dow drops 500+ points for the week
Nasdaq plunges over 3%
Small-cap Russell 2000 gives back half of election gains
FED'S REALITY CHECK:
Federal Reserve Chairman Jerome Powell's stark message that the Fed doesn't need to be "in a hurry" to cut rates has fundamentally shifted market expectations. Rate cut probability for December has plummeted to 58% from 86% just a month ago.
INFLATION CONCERNS INTENSIFY:
Recent data shows stubborn inflation:
Core CPI stuck at 3.3% for third straight month
Producer prices accelerating above expectations
Fed's 2% target remains distant
TRUMP TRADE UNWINDING:
Post-election winners showing significant weakness:
Nasdaq 100 surrenders nearly all gains
Small-caps retreat sharply
Tech sector leadership wavering
MARKET VULNERABILITY:
Citi US equity strategist Scott Chronert warns: "We are working from euphoric sentiment levels and implicit growth expectations at post-2008 highs. There is a lot of pressure on macros and fundamentals to deliver."
CRITICAL WEEK AHEAD:
Markets face crucial tests:
Nvidia earnings Wednesday
Key retail earnings from Walmart, Target
Housing market data
Consumer sentiment readings
EXPERT WARNING:
"Slower progress on inflation in recent months may prompt the Fed to reevaluate its pace of easing moving forward," cautions Wells Fargo's economics team, led by Jay Bryson.
If Dan Ferris is right, as he often has been over the last 25 years, most investments you own in a typical U.S. brokerage account may now be facing a risk unlike anything this country has seen in the last 200 years.
Dan says, because of what he sees coming... stocks, Bitcoin, and more could soon collapse in historic fashion, in record time.
It does sound hard to believe anything could go wrong right now... but, of course, that's what people thought in March 2008, when Dan warned his readers that Lehman Brothers was about to collapse.
Dan, who has called nearly every major market disaster since 2000, has been featured in publications like Barron's and Bloomberg – for good reason. And his work is followed by names at Wells Fargo, Barclays, UBS, and even the Royal Bank of Canada.
Today, Dan says:
"Millions are about to be blindsided unless they take the time now to prepare. The last time anything close to this happened in America, our economy suffered a large surprise crash. The market netted 0% over the following sixteen years. And by the end, adjusted for inflation, American investors lost 80% of their wealth. This time, I expect much worse."
He's urging everyone to consider moving a portion of their money to a new type of investment, right away. (It's not gold, real estate, or cryptocurrency.)
He adds:
"In the past, investors who made the right moves during a time like this could have seen eight times their money or much more, while the rest of the market experienced a surprise crash... followed by years and years of stagnation."
CONCLUSION:
The combination of stubborn inflation, Fed caution, and unwinding "Trump trades" suggests investors should carefully reassess their positioning. This week's data and earnings could determine whether recent weakness marks the beginning of a larger correction.
My senior analyst (who has called nearly every major bubble since 2000) says... this post-election rally is not what it seems to be.
But he doesn't phrase it so nicely...
In his exact words:
"This is all leading to a single, disastrous conclusion... which could become clear to the market as soon as weeks from right now."
His name is Dan Ferris.
His work is followed by Wells Fargo, Barclays, and UBS - because he has a 25-year history of predicting bubbles and crashes, with startling accuracy. (He predicted the Lehman collapse in '08, the crypto winter of 2017, and he even called the peak of the Nasdaq in 2021 to the exact day - and those are just a few examples.)
Today, he says that regardless of your personal politics, or how much money you might have made the last few years... very soon, there will be no avoiding what's really going on in the U.S. economy today.
Dan's research shows that the last time the market looked this way, not only did our economy suffer a large surprise crash...
The market went nowhere over the following decade.
And by the end, adjusted for inflation, American investors lost 80% of their wealth.
This time, Dan says it could potentially end much worse.
What's going on?
I simply don't have room to explain in a single email.
Dan can give you all the details - and show you precisely what he recommends you do to prepare your wealth.
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