D-Day is tomorrow, October 31, 2017. But as we edge closer to the date, the tectonic shift we’ve been predicting is already happening:
D-Day is coming SIX days after the most powerful central bank in the world, the Federal Reserve, announced that its massive 8-year bond-buying program is officially ending; that its giant money-printing presses are screeching to a grinding halt.
Fortune has called it the “end of an era.”
It means the Fed will start selling its pile of bonds.
So bonds fell.
D-Day is coming FIVE days after the second most powerful central bank in the world, the ECB, followed suit. It formally announced it will slash its own bond-buying program in HALF from 60 to 30 billion euros per month.
The euro plunged.
D-Day is coming on the SAME day that the Federal Reserve meets again — this time to announce or plan still further action.
U.S. bonds and the euro are likely to plummet.
D-Day is also coming on the heels of other monumental events that mark this unique transition:
- Passage of the budget bill in the U.S. Congress, paving the way for massive tax cuts that are expected to add trillions of dollars to the federal deficit over the next five years.
- Sharply higher interest costs on the $20.4 trillion national debt. According to the Congressional Budget Office, each percentage-point rise in the government’s interest costs adds $1.6 trillion to their 10-year deficit projection. If the average for the period goes up five points, it will add $8 trillion!
- In Japan, a resounding “victory” for Prime Minister Abe, empowering him to rewrite the constitution, militarize Japan, and then … ramp up more debt for defense spending like never before.
- All over the world, financial and military battle lines are being drawn. All over the world, preparations are underway for trade wars, currency wars, interest-rate wars … civil wars, regional wars, and worse.
What’s happening and how did we know it?
It is the Great Supercycle, a convergence of powerful forces that spin off black swan events — events that even the best of minds have not foreseen.
And now, just as we’ve been warning you day after day, we are passing through a unique vortex in time. The twilight zone between two eras.
We are leaving behind the era when governments could borrow and print money with impunity; and we are entering an era when those governments will have to pay the price for their orgy of debts and money-printing.
At the same time, we are leaving behind an era of relative peace; entering a new era of global conflict and war.
You can almost feel it. Like a shift in the wind. Like a sudden chill in the air.
It’s actually quite obvious when you think about it.
We knew it was coming because we saw it in the same returning comet that struck in the 1930s.
Early 1930s; Late 2010s
Today, much as in the early 1930s, flight capital is pouring into the United States from overseas and fueling a great bull market in stocks.
Most people don’t remember what happened so many decades ago. They don’t know that, after hitting bottom in the early 1930s, the Dow Jones Industrial Average surged more than fourfold during the Depression.
Nor do they recognize how something very similar is happening here, just as we said it would.
Much as in the 1930s, the dollar is strong, also thanks to foreign flight capital.
And much as in the early 1930s, bond prices are about to crash.
Most people don’t remember that critical consequence of the Great Supercycle either.
But I do. In 1930, I wasn’t born yet. But many years later, my father told me how he made his first fortune in the bear market of 1930-1932.
And then he also told me the story of the bond market crash!
For over a decade, bond prices had been going mostly up as Treasury yields fell. (In the chart, see the long bull market in bonds starting in 1920).
Sound familiar? It should. Because that’s exactly what has happened in this century, too.
But then, when least expected, smack in the middle of a deflationary period, producer prices suddenly jumped. The Fed took some steps to tighten money. It raised its short-term rate a tad. And then, it happened: Interest rates exploded. Through the roof!
Bond prices, which fall when rates rise, literally collapsed. That was unheard of in a depression. (See red arrow in chart.)
The price of many low-grade corporate bonds plunged to pennies on the dollar, as their average yields skyrocketed to 11%. That was also unheard of.
Even the value of a 3-month Treasury bill took a hit, as its rate surged sixfold, from 0.5% to 3%.
Irving Weiss |
“I was taught that bond prices always go up and interest rates always go down in a recession or depression,” said my father. “So you can imagine my surprise when precisely the opposite happened!
“The stock market crash of 1929? That made sense.
“But a BOND market crash in the early 1930s? That was a shock. I had no idea anything like that could happen. Ever!
“If I had only known. I could have made a second fortune.”
Why did it happen and how come he didn’t foresee it?
It was the Great Supercycle, a convergence of powerful forces that spun off a series of black swan events — events that even the best of minds had not foreseen.
And one of those events was a panic in the bond markets as investors feared inflation. Or as they rushed to raise cash.
All very similar to what’s starting to happen again now!
Benefits for You
This can bring you many benefits.
You can make a not-so-small fortune right now from special Exchange-Traded Funds (ETFs) that are designed to surge when Treasury bonds fall.
You can profit again with another set of ETFs when Treasury bonds recover.
Or if high yield is your goal, you could wait for long-term bond yields to reach a peak and lock in double-digit returns for decades to come (provided you avoid the pitfalls).
Plus, we’ve built our Supercycle Investor from the ground up to benefit you in a host of other ways as well.
Benefit #1. Track Record. Our experts at the Edelson Institute used the disciplined research of cycles to predict the Crash of 1987, the Trump bull market, and every major investment event in-between. That kind of foresight gives you tremendous profit-generating power.
Benefit #2. Four Fortunes. Our Supercycle Investor is designed to guide you to four separate fortunes: When Japan’s economy sinks, driving fear money into U.S. markets. When Europe goes down, driving even more fear money our way. When our own market ultimately succumbs. And throughout this entire period, as fear money flows into alternative safe havens, like gold or silver.
Benefit #3. Massive discounts. You get a huge discount on our yearly rate. On top of that, you get an EXTRA three years free.
Benefit #4. Our Anytime Guarantee. No matter when or why, you are ALWAYS entitled to a full refund on the remaining balance of your membership.
Just remember: Tomorrow is the last day for enrollment. No exceptions. After tomorrow, no one can join at any price.
Go to this page for the video recordings of our three-part emergency conference on this Great Supercycle opportunity.
Go here if you’d like to read our latest report with all the details.
Click here to check out all the additional benefits … and to join, if you so decide.
Tomorrow is D-Day. That’s also when it all ends.
Good luck and God bless!
Martin
{ 6 comments }
Martin
What specific event will occur to make this happen? Does it have anything to do with the potential switch to World Currency to value commodities as predicted by Jim Rickards?
Your colleague, Bill Hall strongly suggests buying TLT, a 20 year Treasury Bond long ETF.
Bill says that the 10 year treasury yield goes down as a potential stock market pullback approaches. What do you think?
Ok, you scared the S___ out of me and now I feel helpless in this market. I am going to use the data from 2008 as a basis and from that I will decide which ETF’s are the most vulnerable.
Thank you for the offer, sounds fantastic & I would love to be part of it, but unfortunately I do not have the funds to spare.
Regards
Mark Koster
SMELL LIKE A BIG RUN IN GOLD &SILVER COMING..
Hi Martin,Sean,Tony/All,I subscribe to a few of your letters and when deciding which companies to invest in find nearly one hundred recommendations from the different authors.As cash is limited how do I decide which companies are the best value with the highest expectation of the greatest returns? Is there a top say 5 list from each author available?Thanks for the great work,Paul,Australia
I hope the financial markets worldwide completely collapse then we can get real with ourselves