January RAGE Gauge: Free Money for All, and to All a Good Night

December 16, 2021 By E.J. Smith - Your Survival Guy

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Let the parties continue, because the punch bowl is still flowing. Yesterday, when the Fed announced a tighter monetary policy—an end to bond purchases and three rate increases—markets cheered. Because halting asset purchases and raising rates a whopping three times is like moving a few ornaments on your Christmas tree. It’s all for show. And just like the “Jingle Bells” refrain, the Fed’s just another reindeer pulling Biden’s sleigh. It’s free money for all, and to all, a good night. What could possibly go wrong?

For serious Americans like you—the savers, entrepreneurs, small business owners, executives, retirees—this is not news. This is a disgrace. Three rate increases? That’s about as high as the stand propping up your tree, and is hardly near the top where Richard C. Young’s historic North Star belongs.

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And since when is inflation transitory? The Fed’s in the inflation business and has been for years. It’s what they do.

Action Line: Central banks the world over talk about “soft” landings. Listen, I’m not a pilot, I’m Your Survival Guy, government has a history of screwing up landings and cleaning up the wreckage after the crash. I’m not in the prediction business. Prices are what they are. They can go as high as someone else is willing to pay. Prices are essentially a qualitative event. I want you focused on the quantitative. In other words, I want you to get cold hard cash in the form of dividends to be “invested” in the chaos.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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