How the Fed is Setting the Market Up for a Huge Boost

At 8am this morning, the Fed unleashed another salvo to try to shore up the market and the economy.

This time, the Fed took the unprecedented steps of expanding the assets it will be buying from just Treasury bonds to corporate and municipal bonds. This will serve to shore up the balance sheets of private businesses as well as municipalities.

It’s a small step away from buying corporate debt to buying stocks. The Fed has not announced that move yet, but it now seems like it’s likely.

The Fed also removed its past limits on asset buying, making this new round of quantitative easing (QE) effectively unlimited in size.

That’s all in addition to the Fed’s March 15 announcement that it was cutting interest rates by a full percentage point, resuming QE, and cutting bank reserve requirements to zero. Two weeks before that, the Fed had cut rates by half a percentage point.

The Fed’s last two attempts did nothing much but create a short-lived jump in markets followed by an even deeper drop

The Market’s Gift to You – One of My Favorite “War on COVID” Stocks Goes on Sale

Our country, and 168 others around the globe, have been invaded.

And one enemy, called COVID-19, has the world marshalling resources to combat it. In fact, President Trump called himself “a wartime president” on Wednesday.

This war is not being fought on battlefields with guns and tanks, but in hospitals, schools, and homes with personal protective equipment and disinfectant.

Lots of disinfectant.

And chances are if you don’t have enough disinfectant products in your house, you’ll have a tough time finding them on the shelves.

And that’s where today’s stock recommendation is based on – it’s another story of stock market haves vs. have nots.