BALTIMORE (Stockpickr) -- Don't let the latest press releases from the Fed fool you -- we're headed on a collision course with another big round of stimulus in 2014.
Yes, QE5 is coming. Are you ready for it?
Today, I'll show you why the Fed isn't showing you the whole quantitative easing picture and how to position yourself on the right side of this unmistakable trend.
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"Interest rates are headed higher. Uh, just kidding!"
That's effectively what Federal Reserve
chair Janet Yellen announced in her first quarter as the big boss of the big bank.
Just over a week after shocking investors with news that the Fed could begin ratcheting interest rates higher as soon as six months after the end of their bond-buying smorgasbord, Yellen assured us that the Fed would continue to provide stimulus cash for "some time to come."
Welcome to the latest round of Fed minutes, my possible by Plausible Deniability and viewers like us.
The markets reacted like they always do to Fed decisions: like clockwork.
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Yellen's surprisingly hawkish interest rate speech basically called a top in the S&P 500
in the middle of March -- and the backpedaling a week later give the big index one final push higher before jobs numbers yanked the floor out at the start of this month. But if you think that Mr. Market's reactions to the Fed's public-facing comments were just side effects, think again. The Fed is using every carefully calculated comment it delivers as a powerful market-shaping tool in its arsenal.
But when words fail to get things done, there's always more quantitative easing. And the there's one chart that's been a spectacular indicator of the Fed's stimulus plans. No, it's not stock prices, jobs numbers or any of the other economic stats that most investors are fixated on right now.
Or, more specifically, the Fed is targeting a pretty narrow definition of inflation: a 2.2% minimum in a metric the Fed calls its five-year forward inflation rate.