How to Prepare for The Next 4 Years
Recently I’ve been hearing our Catalyst Cash-outs members say they “don’t like Kamala Harris” or they “don’t like Donald Trump.”
Look, I hear you.
Politics can be polarizing. I understand some strongly favor a Republican President vs. a Democratic President and vice versa. I’m not here to tell you who you should vote for.
And by all means, keep trading the short-term, post-election euphoria to your advantage. I recently closed multiple winners on Marathon Digital Holdings (MARA) to play off the cryptocurrency trends as well.
However, I’d caution readers to look beyond the short-term euphoria, and understand what really controls the stock market.
The truth is… bond markets will control the economy for the next 4 years.
And in addition to the markets, the bond market will also control the politicians. Because if the politicians try to spend money and drive up our already eye-popping $35.7 trillion-dollar debt, that means interest rates could go up 6, 7 and maybe even 9 percent.
This means inflation could go much higher, even higher than what we saw at its peak in 2022.
I don’t say this all to scare you or be a curmudgeon, I say it because it’s simply how the markets work. The markets don’t care who’s president.
It’s the bond traders who are really in control. In fact, bond traders have the power to break the economy.
If you recall back in 1992, billionaire investor and philanthropist George Soros broke the Bank of England. How it happened was Soros bet against the British pound, which then forced the British government to withdraw from the European exchange rate mechanism (ERM) and devalue its currency.
We’re seeing a similar situation right now in the United States. There’s so much money on the sidelines with hedge funds and private equity and bond holders. These areas can actually break the economy.
So remember, the bond markets will decide what the markets do over the next 4 years – not a politician.
YOUR ACTION PLAN
In order to protect, preserve and ultimately amplify your profits over these next 4 years, we’ve been adjusting our portfolio in Catalyst Cash-Outs. In fact, we recently cleared some ledger to prepare our strategy on yesterday’s call. I also let members in on a unique gold play that could be the next great value stock.
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