The U.S. stock market has initiated a heavy plunge the last few days. Yet, thats not the crux of the matter. As you know, I track daily alerts (from the New York Fed) on the Daily Fed Funds Effective Rate (the interest rate at which banks and intermediaries can borrow from Americas central bank). Whats the point you might be asking? The point to nail down is despite this recent U.S. stock market nose dive, the FED has kept the Fed Funds Rate at .12 percent (the highest Ive witnessed all year). In other words, theyre not responding for the sake of perpetuating the stock market Ponzi Scheme this time. This, along with a new buying opportunity presenting itself in the oil sector, will assure that the stock market dip will ultimately be a full nose dive; be careful. The governments market manipulation which led to this stock market bubble in the first place may now come to a screeching halt. Undoubtedly, the FED/Treasury Department will initiate a new round of money printing (QE) early in 2015. By that time, however, the stock market will have already drastically reversed course because of all the de-leveraging the big players will have been forced to do. Therefore, its likely the newly printed money in early 2015 will not re-enter the stock market for a long time; maybe even a decade. Where will the next 2015 round of money printing end up? Over time, the effects of the next round of quantitative easing will most likely start finding its way to the oil, real estate and silver/gold sectors. If youre wise, you might consider bracing yourself with high quality downtown Chicago real estate now that Chicago (within the last 3 months) entered its latest real estate wealth phase. New York and San Francisco are great too; only their real estate wealth cycles started over 3 years ago. Therefore, the price levels are much higher in New York and San Fran than for downtown Chicago. In plain English, Chicago is cheap for the moment. One way or another, I would consider downtown Chicago, New York or San Francisco now. The only competitor I can see for quality Chicago real estate in the remaining decade is Silver and cash. If you own real Silver bars/coins (not the paper silver), you wont have the ongoing monthly cash flow, but youll be in a strong position nonetheless. The government central bankers around the world will continue to print currency to stave off deflation; but they will fail. As you know, in a deflation, U.S. dollars will get stronger. Therefore, simultaneously holding Cash and Silver/Gold will offer you the perfect hedge. As far as buying high quality real estate, heres what you should look for. Click play to learn what you can expect now... youtu.be/hXWmIMPIZJU
Posted on: Mon, 15 Dec 2014 21:03:55 +0000
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