The "Fed Cycles, Record Investment Prices & Risk Amplification" free book uses a series of financial analyses to examine how cycles of crisis and the containment of crisis have transformed long term and retirement investing. It also explores the use of "reversals" to turn inflation into wealth, and to financially benefit from low interest rates.
The book consists of more than 20 chapters/analyses. These analyses build upon each other in a steady progression.
The book is organized in four sections, and an outline of the sections as well as some of the key topics in each section can be found below.
Section One: Understanding The Cycles
- The source of the cycles, and why they have changed over the last 20 or so years.
- How increasingly heavy-handed Federal Reserve interventions have been amplifying the power of the cycles.
- The trap that the Federal Reserve has created for itself, and why this creates amplifying cycles that progressively move farther away from long term averages.
- How the cycles have transformed investment prices and returns in key investment categories.
- The non-random nature of the cycles, and how we can understand much of what is likely to happen in advance.
- How the amplified cycles create a roller coaster of higher highs and lower lows, that is outside of the assumptions built into most financial planning.
Section Two: Identifying Investment Opportunities - Active
- A practical example of how to turn new rounds of zero percent interest rate policies and massive monetary creation (QE) into high rates of return.
- How the cycles of crisis and the containment of crisis completely change the rules for investing and the long-term creation of wealth. Why the past will no longer be a reliable guide for financial planning.
-The financial mechanics for how planned Fed policies could create the highest asset prices of our lifetimes - even in inflation-adjusted terms and well above today's levels - for stocks, bonds, homes and investment real estate
-The extraordinary potential downside from a breakdown in the new cycles, and how these devastating losses may not be cyclically recovered if we return to long-term averages for investment valuations, but could become "permanent" in inflation-adjusted terms.
- An example of reading the Fed minutes (FOMC), to identify the unprecedented profit opportunities that are likely to be created by the Fed's planned unprecedented new measures to deal with future recessions.
- Understanding negative interest rate investments, and the mechanics for creating maximum profits from a potential future move to negative interest rates.
- How the cycles can end without financial meltdown or catastrophe, when something similar has happened before, and the life changing implications for investors.
Section Three: Turning Inflation & Low Interest Rates Into Wealth - Long Term
Inflation - even at low levels - is the great destroyer of wealth and savings over time, and is perhaps the single greatest threat to standards of living over the course of a long retirement. Low interest rates cripple the wealth building power of compound interest, and can greatly reduce cash flow in retirement. The simultaneous combination of inflation and low interest rates is excruciatingly difficult for most investors - yet, it is where government choices are increasingly taking us as a matter of policy.
This third section of the book explores what will be new solutions for most people when it comes to two of the greatest challenges that investors are likely to face. The focus in this section is not on rapid price movements between stages in the cycles - but on long term strategies to reverse the negative effects of inflation and low interest rates, over the decades and across multiple cycles.
We will explore how to turn inflation into wealth - so that the higher of degree of inflation, the greater the real wealth that is created over the years (this is not based on precious metals, but can create higher and more consistent inflation-adjusted rates of return).
We will also explore how to turn low interest rates into wealth - so that lower that the Fed forces interest rates, the more wealth that is created over time (this is quite different from the active Section Two strategies).
- Financial analysis of how individuals can use inflation to transfer wealth from other individuals.
- The hidden and unexpected ways that governments use inflation to systematically take wealth from investors - without publicly raising tax rates (these methods are well understood by government economists).
- Financial analysis of how to tap directly into the #1 long-term source of wealth from your home – an unexpected and historically proven source which is not understood by most homeowners or real estate investors.
- How governments have historically used the combination of inflation and low interest rates to manage large national debts while avoiding insolvency. This process will arguably be the dominant determinant of individual investment outcomes over the coming decades, yet few individuals are aware of how this has worked in the past, let alone how to protect themselves from it in the future - or to even benefit from the process.
- Financial analysis of the mechanisms that financial institutions use to transfer the losses from inflation and low interest rates to individuals - without depositors and savers being aware of what is being done to them.
- Financial analysis of how to turn inflation into a wealth building machine that increases your financial security and the purchasing power of your savings.
- Financial analysis demonstrating how low interest rates can be reversed and become a source of increased income and financial security.
Section Four: Redefining Precious Metals
Precious metals are only one of the investment categories, and most of the book is about the other investment categories. That said, gold and precious metals have uniquely advantageous properties when it comes to profiting from the cycles - the properties just aren't what most people think they are.
- Financial analysis of why gold is not a perfect inflation hedge, but far from it.
- An alternative historical analysis of gold in recent decades, and what makes gold a potentially far more valuable portfolio component than if it were just a mere inflation hedge.
What Will Be Sent To You
When you sign up, a confirmation email will be sent to your email address.
Once you confirm that it is your email address and that you do want the information, the book will be delivered to you in a series of chapters.
You will also be signed up to receive an ongoing series of financial analyses about current economic and financial events, with an emphasis on looking at them from a cyclical perspective.
The bottom of every communication will have an unsubscribe link, you can stop at any time.
Other learning resources (such as workshops) are offered on an ongoing basis, and there will be mentions of these additional resources. They are not the core of the book, they are quite low-key, and they generally take the form of an addendum found at the end of the chapter or analysis (or the sidebar), rather than in the body of the analysis.
Bob H
"I have found your websites, articles and reports very enlightening. Thank you for sharing your insights with us. The inflation Report is a real wake up call."
David B
“breaks the mold on traditional thinking and I believe can help a tremendous amount of Boomers"
Greg J
The testimonials shown were unsolicited and no compensation was given for them. Are they typical? Good question. The writers felt so strongly that they wrote, most people don't feel that strongly and don't write, so that means that the testimonials are atypical.
