This Is the Root of Many of America's Problems

Written by Nick Hodge
Posted February 26, 2020

You got a taste this week of how quickly the rug can be pulled out from under global markets.

The S&P cratered 275 points in two days — losing 8% of its value and erasing the last two-and-a-half months of record-breaking gains.

A bear market, which we haven’t seen now in a record amount of time, would see losses much worse than that. We’d need to see a full 670 points come off the S&P to see the 20% fall needed to declare a bear market.

Can you imagine the CNBC blaring red lights! It would feel like the market is imploding after a decade of bros buying dips diligently.

Whether we get a bear market or not is not the topic I wanted to tackle today. Because I think there is something more sinister afoot even if stocks move to March highs.

You probably realize that stocks haven’t been at record highs because of record sales and profits.

Quite to the contrary, the Wall Street Journal reported last month that 40% of companies listed on the stock market currently make no profit. That’s like a football team playing a season with five players on the field and winning the Super Bowl. Or a plane flying with one wing. Can’t happen.

But in the stock market it has been happening since the last financial crisis. The football team with five players has won the Super Bowl 10 years in a row. This doesn’t happen without some back-room tinkering.

And boy has there been some tinkering.

Just since February of last year the Federal Reserve has pumped over $500 billion into the repo market. And that’s a tiny fraction of the intervention it's done since 2008.

You don’t need to understand QE or repo markets to feel the effects.

All you need to know is that when the Fed conjures up billions and trillions of dollars, it is stealing from you.

They don’t teach this in school. But it’s the root of many of America’s problems. It’s why the rich get richer and the poor stay poor and there is no longer a middle class.

It’s a core reason deaths of despair and suicides in America are at record highs.

It’s a reason you’ve got the Trumpster in the White House and will likely get him for four more years.

And it is going to blow up significantly. Coronavirus is exposing some of the cracks.

The more people who know this, the better off we’ll be.

I’ve put together new research that demystifies all this and reveals the endgame.

You’ll want to see this if you have any money at work in the market.

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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