Every single stock market investor heavily follows every hint of action(or lack of) that the Federal Reserve makes. Why is that? And when did the Federal Reserve gain that type of control over the Stock Market? In this episode, Blake explains what the correlation is between the Federal Reserve and the Stock Market, and why this is important information that every investor should know.
Every single stock market investor heavily follows every hint of action(or lack of) that the Federal Reserve makes.
Why is that? And when did the Federal Reserve gain that type of control over the Stock market?
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Key Takeaways:
Who manipulates the entire stock market? (0:54)
Federal reserve press release does not mention a stimulus (1:40)
Why does the stimulus package affect the market? (2:05)
Massive correlation between what the federal reserve is doing and what the stock market is doing (3:28)
How much will the interest rate change over the next few years? (4:53)
When did the federal reserve become so important to the stock market? (5:42)
Who is in charge? (9:06)
How do you regain control? (9:27)
What should you do if you can't win in the game that is the public stock market?(10:39)
What do investors need right now? (11:06)
What is a Solomon General? (11:40)
King/Queen vs. Peasant (13:24)
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The Fed Chairman Jerome Powell just put out a statement that did not mention stimulus and the stock market dropped. Why does the stock market follow the whims of the Federal Reserve so closely?
Hello, and welcome. My name is Blake Templeton, CEO of Boron Capital, and your host on the Solomon Investor Podcast.
As I've been writing my new book, I've had to be brutally honest with investors who want control, collateral and cashflow. They would never step foot in the stock market, because there is no control, especially because the biggest player of them all manipulates the entire stock market. That's the Federal Reserve. The Fed has promised to spur on the stock market more now than ever- and that's why every single stock market investor is leaning heavily on every hint of action that the Fed does or actually does not do. Hey, if you're new welcome! Our mission of Boron Capital is to provide you the most clarity and the best investment opportunities for you to invest into in this chaotic world. Subscribe now, hit the like button for the YouTube algorithm, because this tells YouTube that this message is worth listening to. So hit that like button, and let's roll! So at the time of publishing this, the Federal Reserve has come out with a press release and it says it's committed to using its full range of tools to support the US economy and then seeks to achieve maximum employment and inflation as at a 2% rate over the long run. Now, again, they're blaming this on the Coronavirus, and if you follow me at all, you know where we stand on that. But what we're focusing on right now is that everything the Federal Reserve has said there's no mention the new stimulus in the stock market freaked out. All right, this is a document from Marketwatch and it says "investors were left disappointed by the Federal Reserve's actions or lack thereof late Wednesday as a central bank failed to indicate any new stimulus." It also says "spotlights will now be on Congress over a new stimulus package with further delays potentially impacting markets." Why does the stimulus package impact the markets? Also got Fox Business, "as stock futures plunge as fed gives no stimulus indication. US equities future dropped ahead of the Thursday session on Wall Street as concerns mount about further Coronavirus stimulus. This is another article from Marketwatch- "DOW snaps four day winning streak as stock finishes day with modest losses. US stock finished Thursday with losses as investors digested the Federal Reserve Chairman drum pals economic outlook. Along with lackluster US economic data. The Federal Reserve warns Wednesday about a slow economic recovery that may need additional fiscal help creating some uncertainty for investors hoping for future gains." There is a massive correlation between what the Federal Reserve's doing and what the stock market's doing. Now if the stock market was real - if there's something tangible that you could put money into and it actually held value,it wouldn't matter what the Federal Reserve is pumping in or not pumping in. This is also from CNBC It says that "on the European markets. European stocks close lower as markets react to Central Bank announcements." What central bank announcement? That's the Federal Reserve. It says "European markets started the day following their counterparts in Asia and the US lower as traders digested the Federal Reserve's pledge to keep rates low over the next few years." Alright, here's an article from CNBC. Now this is Powell trying to be optimistic for the stock market, but keep the prices up. This is a speech when he's asked questions, and a question comes and asked whether he thinks more fiscal stimulus from Congress is necessary to sustain economic recovery. And Powell says he thinks certain areas of the economy will continue to struggle without aid. He added that "the vast majority of private forecasters anticipates substantial additional fiscal support, but it's not here and the market is in a rollercoaster." This is from the New York Times, it says "...Fed will keep rates unchanged until at least 2023." That means 0% until 2023. Now, this is the first time I might add, the interest rate forecasts has been given out for a three year time period. It's never been done before. Why do they have to do that? Because they're trying to buy uncertainty, they've got no more bullets in their gun and they're trying to create certainty. Alright, if you think we're going into hyperinflation, or if you want to put a case together that the Fed is going to stagnant inflation, make a comment below,
I want to hear from you our know what you think. And if you just simply think you know what, I want more information just like this, put a comment below, #moreinfo. Let me tell you this, whether we're in for hyperinflation, or stagnant inflation, or even deflation, there's one thing that we're all clear on- everyone in the stock market is following the Fed. But since when did you give the Fed the keys to your retirement portfolio? I mean, when did you actually ask them to manage your portfolio to print massive amounts of funds, that creates a massive super bubble that directly affects the stock market? When did they become so important? And why does everyone bow when they speak? Let's do a little history lesson on the Federal Reserve and this centralized system, then we'll talk about why that affects you, and why you should gain control over your assets. Then lastly, we'll talk about the source that we use to control our assets, and that follows the principles of The Solomon Way. All right, how this all started. Now, the Federal Reserve, it's not federal, and there's no confirmation that it even has any reserves at all. It's a private bank that owns private banks underneath it. It has no reserve requirements, AKA no need for savings or checking account. And it can charge interest on every dollar it's given- AKA anything it prints. In their own words, they hold the proverbial purse, and thus the attention of every investor in the world. According to them, their main mandate is "to conduct our nation's monetary policy." That's not a conspiracy theory.
That's the truth.
During the Panic of 1907. It was JP Morgan, a legend of the times, who ultimately forced the government into acting on the central banking plans it had been considering off and on for almost a century. And in 1913, the Federal Reserve Act was created. The Federal Reserve was given power over the money supply- by extension, the entire economy. Continuing to World War Two the Federal Reserve's power expanded; by expanding its power and the amount of capital It was called on to control for the Allies. President Franklin D. Roosevelt enacted the Banking Act of 1935, increasing the independence of the Federal Reserve from the executive branch and shifting some powers formerly held by the Reserve Bank's to the Board of Governors.
In the 1970s, when the dollar left the gold standard, the Federal Reserve was given power to control interest rates and inflation, something the gold standard never allowed. But it was in 1987, that the power really became something they actively used. That's when Alan Greenspan unleashed low interest rates to battle a panic that was very real, but almost invisible to the world. That tool became the first we saw actively used by then Ben Bernanke, Janet Yellen, and now Jerome Powell. In 2009, their assets took to Treasury securities, mortgage backed securities and more. Today, that also includes propping up the stock market by purchasing junk bonds. In total effect as increased their assets from 989 billion on July 24, 2008, to over 7 trillion by September 7, 2020. And every move and adjustment over the last 107 years, has caused the markets to not only rely on the Fed, but to pray for the Federal Reserve to take massive unlimited action. When you purchase your home, or you invest in your 401k, or you wait for your pension and you see all the prices around you increasing, you've got to start asking the question, "Who is in charge?" Now to be fair, the Federal Reserve does not have all power. Since Congress does have to approve spending, however, they stand ready to print more money as soon as it is approved. Now you and I've got to ask the question, "How do we regain control of our investments?" How do you gain stability and support and something that I would call the middle of the second depression? Where do you go to gain control over your investments? The answer is get out of the Fed controlled assets and get into the private market, where the new ecosystem is where- it's private investments- where you can have control, cash flow and collateral. If we face inflation, and you and I know that the Fed just adjusted their policy away from a 2% goal to a full working force, then physical assets are the best hedge. Okay, what about gold is gold a good investment? Gold might be a good control, but it doesn't actually produce anything- so it's not any better than just sitting in cash. It's a store hold of wealth, but it doesn't actually create wealth. In an inflationary season, you have to create massive wealth. If you don't, you'll be a victim of massive loss. Solomon Investors are looking for control and cash flow, they're looking for returns with a limited downside- the best of the best in the stock market who've got thousands of employees and tons of computers running all their data. They all say "hey, it's a zero sum game, there will be winners and there will be losers." So, if you know that you can't actually win in that game, then you've got to have hard assets, you've got to have assets that you can trust that stand the test of time, that are collateralized, they cashflow, and give you control. So the truth is today, you need three things: you need to control, cash flow, and for inflationary hedge- you need collateral. Now, a lot of people say, That's too good to be true. Like my money is collateralized by something?
That doesn't even exist anymore.
And then I have control? Like, it's not just gonna be a roller coaster, and then I'll actually make money on my money and not lose my principal? Yeah, that's what a Solman Investor does. That's the new ecosystem. That's the new world that you've got to live in. Alright, so does cash flow mean you have to manage real estate? And the truth is: no. Solomon Investors use Solomon Generals. Solomon Generals manage and control everything for you. So you can truly rest while you invest. Your whole goal is to make the transition, then you have the collateral, and they manage the collateral, they bring in cash flow for you, and control your assets for your retirement for you. A question I get all the time is, "Do I have to know the legal jargon? I mean, do I have to go be an attorney or learn the legal stuff? Or how do you navigate between all that?" Look, as a Solomon Investor, you don't have to do that. You hire a Solomon General, the Solomon General? He owns that domain. He controls everything for you, he handles all the legal paperwork, he's the expert in the field. Then you truly are able to be what we'd call a king or a queen in the Kings Court. I mean, you literally get to own your inheritance, and stand firm in stewardship over your investments as a king or queen over your domain. And then I often get asked, "Who is this for? Is this just for the uber wealthy?" And the truth is it used to be it used to only be for the family offices are the institutional investors. The SEC is kind of new regulations, that's now opened it up with certain I's dotted and T's crossed that you can actually invest into something that was never done before. This now allows you to come in with as little or as much as you have and invest into the big league: invest into investments that stand with stability of times, and create massive cash flow and equity on the backside. For all my regular listeners out there, you know that control is everything. Now for all those who are new, we use this language called about peasant and a king or a queen. And a peasant is one who's in the trade market, who was in the stock market. You're just a trader on the trade route, paying lots and lots of fees to tons and tons of people along the trade route.
As a Solomon Investor, we get off the trade route.
That's the one who loses money, the whole entire time, it's a zero sum game, you're always going to lose. If the market is good, you still lose because they take lots of fees. If the market does bad, you lose because they take lots of fees. We're not a peasant anymore. So just like we would steward life, just like we would steward a purpose that you're created for, we would steward our finances, and our finances have to be stewarded and they can't be stewarded in the public market. So, you step up, you rise up and you activate your wealth as a king or a queen in the Kings Court and you would do that by taking control. You take control by moving it into the private market. You get out of the public market, you move it into the private market. Then as a Solmon investor, you have a Solomon General, who runs your domain who takes territory for you, who manages and operates and runs everything for you, and your investments are collateralized, then it spits off cash flow. See, control is everything in these uncertain times. And you and I know that the Federal Reserve is taking as much control as they possibly can over the public market. Why? Because they want everyone to bow down to them as they meet their agenda. Hey, if you'd like to invest for control, do me a favor, pull your cell phone and text the word "Solomon" to 31 996. Again, text the word "Solomon" to 31 996. And I'll send you a free copy of my ebook, Seven Ways To Invest Like A Billionaire, plus the insider scoop of anything we have coming out, including our best investment opportunities before we share that with the public. Hey, if you liked this video, hit the like button right now show me some love. Again, hit the like button right now and I'll be in prayer for your wisdom for your investments and blessings on your future. Be blessed.