The Fed’s aggressive interest-rate policy is having a major ripple effect on multiple areas of the economy: stocks, bonds, the real-estate market and more. Analysts are debating whether the Fed is creating a problem in the U.S. that’s only going to get worse. How will your investments be impacted by the Fed’s hawkish rate-hike activity?
For this important topic, Crush the Street sought the expertise of market forecaster Alex Dvorkin, owner of the website InvestWithAlex.com, which specializes in exact price and time analysis for global stock indexes and futures, commodities and currencies, stocks and bonds, and precious metals.
Born in the Soviet Union (when it was still around), Alex Dvorkin moved to the United States when he was 15 and subsequently became a U.S. citizen. Fresh out of college at age of 21, Alex started his first business, a value-oriented hedge fund with market-beating returns. Mr. Dvorkin continues to run his own fund, mostly managing his own money, while heading other projects.
Along with his fund, Alex Dvorkin is also actively involved in a variety of businesses in advisory/board roles. Over the last 10 years, Alex has participated in many different activities that include but are not limited to stock-market research and investing, commodity trading and selling physical commodities in various parts on Soviet Russia, import/exports, technology start-up development, outsourcing and offshoring, selling, marketing, writing, and publishing.
Courtesy of InvestWithAlex.com
Alex’s blog, InvestWithAlex.com is focused on his passion for investing. He created this platform to discuss his point of view, present investment opportunities and one-of-a-kind research, develop contacts, make introductions between interested parties and of course, help people make money.
In addition, Alex Dvorkin is glad to show people the investment approach that he has developed over the last 15 years. He calls it Timed Value, and it is an excellent solution for those who would like to minimize risk while demanding a high return on their investment.
In Crush the Street’s interview with Alex, we wanted to know how the Fed’s hawkish actions will impact investors and the economy. According to Alex Dvorkin, the Fed’s aggressive interest-rate policy is already becoming a material problem. Furthermore, the flattening of the yield curve over the past two years is a major issue that investors need to pay attention to.
Some might argue that the yield curve isn’t a problem because it hasn’t inverted yet, but that could be the next step after it flattens. As history teaches us, according to Alex Dvorkin, after the yield curve inverts, a recession follows and your stock holdings are likely to suffer significant losses.
Even just by being flat, the yield curve is causing significant damage to the economy and the financial sector, according to Alex Dvorkin. It’s already trickling down, and Mr. Dvorkin’s research indicates that the stock-market top is already in. From a technical standpoint, Alex is seeing a double-top formation in the market, and specifically in the New York Stock Exchange.
Courtesy of InvestWithAlex.com
Mr. Dvorkin told Crush the Street that he sees the market indexes going down regardless of what may happen in the political realm (i.e., midterm election outcomes). The mainstream media will blame political outcomes, but the fact is that the stock-market cycle has already peaked and the market is looking to go significantly lower, according to Alex Dvorkin.
The conversation between Crush the Street and Alex Dvorkin is essential listening for all investors, so I suggest that you check out the interview right now. You can also get access to Alex’s predictions and market-timing views on his website, InvestWithAlex.com.
Plus, I advise that you take advantage of Crush the Street’s variety of indispensable financial reports, such as our complete guide to gold and silver investing, our report on aggressive wealth accumulation and cash-stacking hacks, and our report on the top 3 steps you can take to protect yourself from the demise of the U.S. dollar.