Can Tom Cruise Help us Avoid a Recession?

by Andrew Zatlin October 11, 2022 11:00 am ET

Somebody call Tom Cruise!

Because the Fed is embarking on “Mission: Impossible.”

The thing is, not only will this mission fail, but it will trigger a recession.

Let me explain how you can protect yourself.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Can Tom Cruise Help us Avoid a Recession?

Stop me if you’ve heard this one before:

Inflation is way too high. The only way to curb it is to raise interest rates. Thankfully, says the Fed, the economy is strong. So it can keep raising rates without putting the country at risk.

But here’s what I’m here to tell you today:

This “story” is false. It’s wrong. It just isn’t going to happen.

Here’s why…

The Economy’s About to Get “Juiced”

Starting in January, inflation’s going to start climbing even higher.

You see, in January, there’ll be a five-percent jump in the minimum wage. And a six-percent increase in Social Security benefits. Those two increases are going to juice the economy!

The Fed thinks the economy is strong already (wrong). But when it sees the impact of this juicing, it’ll think it’s even stronger (wrong again). That’s why it will keep interest rates high.

The fact is, the economy isn’t strong right now… and it won’t be any stronger in January.

Let me show you the proof…

The Pullback Has Already Started

First of all, look at Micron Technology (Nasdaq: MU), which makes computer parts. Computers are the lifeblood of our economy. And Micron recently cut its revenue forecasts by a whopping twenty-five percent.

Then look at FedEx (NYSE: FDX). In the course of just a few months, it went from growing at forty percent… to contracting by ten percent!

Bottom line: the economy’s not humming along. It’s ready to collapse.

How could the Fed be so wrong about all this?

The Data Is Being Manipulated

Simple. It’s relying on data that’s misleading.

You see, last week, payroll figures came in at nearly 300,000. That looks solid.

But that number isn’t accurate. It’s the result of the raw data being manipulated by what’s called a seasonal adjustment.

Furthermore, the holiday season is coming. Companies aren’t going to fire anyone then. That would be bad publicity.

But in January, there will be layoffs. And payroll numbers will tank. That’s when it’ll become clear that we’re in a major recession.

Friends, you need to get prepared now. Here’s what I recommend…

Safe Havens

First, look for investments that can act as safe havens. For example:

Oil and gas companies like Exxon Mobil (NYSE: XOM) and Occidental Petroleum (NYSE: OXY).
Utilities like American Water Works (NYSE: AWK) and Ameren Corp (NYSE: AEE).
Auto parts companies like Goodyear (Nasdaq: GT), BorgWarner (NYSE: BWA), and Gentex (Nasdaq: GNTX).
Defense companies like General Dynamics (NYSE: GD) and Triumph Group (NYSE: TGI).

As for where to steer clear…

Avoid These Sectors

Most sectors are cutting their hiring. But the following sectors are doing so sharply:

Building products companies like Fortune Brands (NYSE: FBHS) and Louisiana-Pacific (NYSE: LPX).
Airlines like Alaska Air Group (NYSE: ALK) and Delta Air Lines (NYSE: DAL).
And banks like Huntington Bancshares (Nasdaq: HBAN) and JPMorgan Chase (NYSE: JPM).

Cutting back on hiring is a clear indicator that these companies are expecting bad times ahead. So be sure to avoid these sectors.

As for my favorite play here — a way to aim to profit from all this — I’ve saved that for “Pro” subscribers. Don’t miss out.

In the meantime, we’re in it to win it. Zatlin out.