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November 2, 2016 | A Bear Market Is About to Show the Fed Who’s Boss

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

They don’t ring a bell at the top, as the old saying goes. In retrospect, we can see that it very likely occurred last summer with a series of three record price peaks, roughly equal, that we were too bored in the dog days of August to care about. Bored we no longer are, however. The election is going to change things very dramatically for all Americans regardless of who wins. About the only thing we can be certain of is that the Fed will NOT raise interest rates. This is notwithstanding the pathetic, hawkish spin that has once again emerged from those bastions of Fed-worshiping ignorance: The Wall Street Journal, The New York Times and The Washington Post. Fed policy has become increasingly irrelevant over the last year or so and will become still moreso as a full-blown bear market in stocks gains momentum. The good news is that whatever flimsy rationale has existed for central bank meddling is about to be banished from enlightened discussion for a hundred years. We are not likely to be so fortunate in hard times with respect to the fate of Keynesian quackery, but a discredited Fed will be a big step in the right direction.

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November 2nd, 2016

Posted In: Rick's Picks

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