Why the Fed’s Silence Speaks Volumes

When the Federal Reserve whispers, the world listens.

When it falls silent, that’s when you need to be scared.

Everyone expected the Fed to say when they planned to cut interest rates.

Instead, Chairman Jerome Powell and company left without so much as a hint of when that might happen.

Markets immediately sold off, with the major indexes closing at the session lows, leaving traders dumbfounded.

Hopefully, you weren’t surprised and have already taken advantage of Hugh Grossman’s 96% Win-Rate Strategy.

We’ve said for months that the Fed can’t cut interest rates.

Everyone else is finally becoming aware of that fact.

Thankfully, there’s still time to prepare if you haven’t already.

Here’s what you need to do.

Unpacking the Fed’s Silence

No one expected the Fed to change rates at this meeting.

However, over half of the traders are expecting a rate cut at the March meeting.

That’s down from almost 90% in December.

Now, there are still a baffling 38.5% who expect a rate cut.

Even more astounding, only 2.7% of traders expect interest rates to remain the same by May.

Chairman Powell confirmed we were off the rate hike trajectory. But he gave no indication as to when they might cut rates.

Current economic data give them no reason to do it anytime soon.

Sure, inflation is heading in the right direction. But it hasn’t dropped below 3.0% yet, let alone reached its 2.0% goal.

The U.S. unemployment rate is sitting at a historically low 3.7%.

As we’ve discussed multiple times, the housing supply is still short two million homes, despite massive price increases. Even the most optimistic economists don’t expect this key economic driver to balance for years.

Yet, everyone on television keeps talking about a “soft landing.”

We’re in the camp of a “no-landing” …essentially stagflation.

Inflation isn’t going anywhere, keeping the Fed rate cuts at bay. Eventually, unemployment will rise, or people will just become poorer on a real-dollar basis.

And the whole exploding government interest problem will get worse every day.

Mispriced Markets

All of this should have been obvious to investors before last Wednesday.

But it wasn’t and still isn’t.

Markets are pricing in a near-perfect economic scenario when we’re far from that outcome.

The S&P 500 trades at 27x earnings, higher than any point in the last two decades except for the year or two immediately after the Great Recession and the pandemic.

That might make sense if rates were at 0%, or if revenues were expected to expand by double-digits-percentages in nearly every industry.

Neither of those two things are true.

So, how is it possible for things to have gotten so out of hand?

One word: volatility.

This single word encapsulates our current problem and why smart investors seek trading strategies like Hugh Grossman’s Trade Signals.

Just last week, nearly a year after the last banking crisis, NYCB, one of the big winners from the first mess, saw its shares plunge as its commercial real estate holdings came into focus.

While some might be willing to shrug this off as a one-off incident, we don’t see it that way.

Commercial Real Estate Doomsday

In this newsletter, we’ve discussed the looming commercial debt problem hanging over banks.

Nearly every bank is now exposed to vacant office properties.

Last year, $541 billion of debt backed by everything from office buildings to hotels came due, the largest amount in any given year.

$2.2 trillion is expected to come due by the end of 2027.

For years now, banks have provided borrowers with extensions, hoping to keep them from defaulting.

But that’s ending, with many borrowers being forced to accept higher rates or enter bankruptcy.

This might sound similar to the housing crisis from 2008.

But we assure you… it’s far worse.

You pay off a home loan’s principal over time (in most cases).

Commercial loans are interest only.

Most of these borrowers are barely hanging on, with vacancies still at historically high levels.

Even the slightest increase in interest rates would force many into default.

Just look at the performance of real estate investment trusts (REITs) like Kilroy Realty (KRC), Boston Properties (BXP) and Vornado (VNO) — companies with huge exposure to this problem.

Their stock charts look more like a failed biotech than a multi-billion dollar holding company.

Silence is Golden…

…But in Hugh Grossman’s world, it’s also green.

Imagine transforming a modest investment into one-percenter status, all within half a year, all through following simple, direct trade signals.

Turning $3,305 into $658,078 in just six months isn’t a myth — it’s what his Six-Month One-Percenter System is designed to do.

With a staggering 96% win-rate, this system doesn’t just beat the market; it plays a different game entirely, targeting a precise 5% gain on each trade.

This isn’t about luck; it’s about a meticulously crafted strategy that leverages the SPDR S&P 500 ETF Trust’s movements through options, offering a straightforward path to significant wealth.

The opportunity is exclusive, with only 60 spots open for those ready to leap.

This isn’t just an investment in a system; it’s an investment in your future, risk-free with a 100% money-back guarantee.

The time to act is now — before silence turns back into noise.

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