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Dear Reader,
The Fed is jacking up interest rates at the worst possible time for the stock market.
Why? The "Fear Index" tells us that investors are already waiting for any possible excuse to sell.
Here it is …
If the investor Fear Index were still in the GREED zone," OK. Maybe the next Fed rate hike would not have such an impact.
Or even if the Fear Index were in the NEUTRAL zone, it might not be so bad.
But right now this Fear Index is in the EXTREME FEAR zone, which makes the stock market highly vulnerable to any downside surprise.
And it just so happens that inflation is so high and so far out of control, there's no way the Fed is going to get away with just a wussy, little rate hike.
To make a dent in inflation, the Fed is going to have raise rates with some big SHOCK!
The consequences could be disastrous.
Perhaps even worse than the Great Debt Crisis of 2008, the Great Recession of 2009 and the Pandemic Panic of 2020.
