The Federal Reserve Just Bolstered the Opportunity of the Century

I must sound like a broken record by now. But after yesterday’s Federal Reserve meeting, I can’t stress this enough. If you haven’t already, go out and buy “divergent stocks” today.

An image of arrows sharply declining and then sharply rebounding upward
Source: Eightshot_Studio / Shutterstock

I’ve been pounding the table on divergence — an ultra-rare market phenomenon — for weeks now. I’ve gone on and on about how this rare buying opportunity arises once a decade during times of peak volatility. It provides investors with the proven chance to 10X their returns in a hurry. And for the first time since 2008, this opportunity is emerging right now.

If I may, I’m going to pound the table a little harder today.

After all, the Fed just injected rocket fuel into Divergence 2022. And the biggest buying opportunity of the century just got even bigger!

Just two days ago, I delivered an emergency briefing on the 2022 Divergence phenomenon.

In that broadcast, I unveiled a portfolio of the top 10 stocks to buy now to take advantage of divergence. Then, about 18 hours ago, the Fed threw everything into hyperdrive.

As a result, the first day our Divergence Portfolio launched, all 10 stocks were up more than 10% on average… in a single day!

My top pick — which I gave away for free in the briefing — soared 16% in a day. Two other divergent stocks popped 17%. Another two jumped 11%.

Those are huge single-day returns. But this is just the beginning. We’re targeting 200% returns across this entire portfolio over the next year, meaning we’ve got another 190% to go.

But that first 10% happened overnight — literally. And with the Fed adding fuel to this fire, I highly suggest you check these stocks out now!

What Did the Federal Reserve Do?

In short, the Fed jumpstarted the 2022 Divergence stock breakout yesterday by sounding a lot less hawkish than people feared.

The Fed has become increasingly hawkish at every meeting so far this year. It grew more hawkish in January 2022 than in December 2021, and then more hawkish in March than in January. This aggressive evolution has coincided with a rapid rise in macroeconomic headwinds — including the breakout of the Russia-Ukraine war and the reemergence of Covid-19 lockdowns in China.

Therefore, as the Fed has grown more hawkish, the economy has weakened. The risks of a recession have grown. And, of course, as all that has happened, stocks have been crushed.

But yesterday, that hawkishness stopped.

For the first time in 2022, the Fed did not sound more militant than it did in its previous meeting.

It hiked rates 50 basis points and announced the commencement of a balance sheet run-off program that would max out at $95 billion per month (both as expected). It announced the potential for another few 50-basis-point hikes over the next few meetings (also as expected). And the bank acknowledged that economic activity was edging lower and said a 75-basis-point hike is not being discussed (a more dovish stance than last meeting’s).

Overall, then, everything we heard from the Federal Reserve yesterday was either:

  1. Consistent with the same level of hawkishness that was expected.
  2. More dovish than what we heard in the previous meeting.

We did not hear anything that was more hawkish.

We believe this marks a critical inflection point for the Fed. The past few months have been characterized by hawkishness, and we suspect the next few months will be characterized by dovishness.

And this dovish evolution will boost the breakout of the 2022 Divergence phenomenon.

The Final Word

Like it or not, the voting members of the U.S. Federal Reserve are the masters of the financial universe.

Collectively, they control the target interest rate, which determines how much everything costs in the U.S. economy. Your mortgage, car payment, student loans, credit card debt — nearly everything in the U.S. economy hinges on the Federal Reserve.

And that central bank just threw rocket fuel on the 2022 Divergence phenomenon.

I cannot state the significance of that enough.

This is like when Tom Brady joined the Tampa Bay Buccaneers. The most powerful force in football linked up with a certain team. And a year later, that team won the Super Bowl.

Now the most powerful force in the U.S. economy is throwing its weight behind a certain group of stocks. And in a year, those stocks will win Wall Street’s “Super Bowl.” They’ll be the biggest winners in the stock market — sitting on 200% or greater gains.

So, while I’ve long thought that Divergence 2022 is the money-making opportunity of the century, I’m now more certain of its profit potential than ever before.

If you haven’t already, it’s time for you to plug into this phenomenon.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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