The Fed’s pledge to print massive, and potentially endless, amounts of money sends our country a very clear message.
That is, without Congress doing its part to stimulate the economy, Big Ben and his merry band of money-printers intervened in the best — and perhaps only — way they know how.
But when Congress returns to work after campaign season draws to a close, they’ll dive into the business of spending those newly minted funds.
Today I’ll share with you a market segment that I believe is going to be a BIG beneficiary … PLUS show you how to get access to my top picks in that booming sector.
All the best,
Hi, this is Sean Brodrick for Uncommon Wisdom Daily.
A lot of people are calling the Federal Reserve’s latest quantitative easing plan “QE Infinity” instead of “QE III.” And I can see why.
First of all, it’s open-ended, and won’t stop until unemployment goes down. Secondly, it allows for unlimited purchases of mortgage-backed securities. Goldman Sachs now estimates that it could cost the government up to $2 trillion. That would be three times the size of QE II!
Critics argue that quantitative easing is a very inefficient way to stimulate an economy. That’s true. But it’s better than nothing, which is what we’re getting from Congress.
Our legislators have decided that cutting the deficit is more important than creating jobs for American workers. They’re refusing to spend money to stimulate the economy, because they don’t want President Obama to get credit for creating jobs before the election.
So Ben Bernanke has been forced to step in and say to Congress, “If you won’t do anything, I will!”
Economists say that the most effective way to create jobs is through direct investment in things like infrastructure. And that type of spending wouldn’t just be unnecessary make-work — our potholed roads, crumbling bridges and inadequate electrical grid are badly in need of repair and improvement.
The good news is, there’s a real chance that things will change after the election. Even if Obama wins, Republicans will probably drop their opposition to necessary infrastructure spending, because it won’t matter anymore if the President gets the credit. Plus, if it’s a choice between that and unlimited quantitative easing, they’ll choose the infrastructure spending every time.
So it’s a good bet that infrastructure spending will ramp up next year. And not just in the U.S. — the governments of China, India, South America and other parts of the world are also trying to stimulate their economies with huge infrastructure projects.
That’s why I’m advising my subscribers to add new positions in select infrastructure stocks and funds, in anticipation of this potential boom in spending.
In fact, I name my 11 favorite infrastructure investments in my new special report, “Get Rich Rebuilding America.” I’m putting the finishing touches on it right now, and I’m offering it at a steep discount if you order before it’s released.
Of course, you can try picking infrastructure investments on your own, but that’s very risky, especially in this sector. Keep in mind that not every investment is a good one, even in a market being flooded by a fire hose of Federal Reserve money.
I’m Sean Brodrick for Uncommon Wisdom Daily. Thanks for watching.