{"id":15313,"date":"2019-11-09T07:30:16","date_gmt":"2019-11-09T12:30:16","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=15313"},"modified":"2019-11-09T07:30:16","modified_gmt":"2019-11-09T12:30:16","slug":"your-best-defense-against-the-fed","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/your-best-defense-against-the-fed\/","title":{"rendered":"Your Best Defense Against the Fed"},"content":{"rendered":"

Mike’s note: <\/strong>For the past week, Jeff has shared the latest research from our colleague Teeka Tiwari on how you can fight back against the Fed’s blatant manipulation of your wealth.<\/p>\n

It all culminates this Wednesday at 8 p.m. when Teeka will host a special event revealing his newest method of earning a steady income no matter what the Fed does.<\/a><\/p>\n

Today, Teeka reveals the one strategy that’s consistently helped his subscribers escape this meddling… and how you can start using it today.<\/a><\/p>\n

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On Monday, September 15, 2008, 158-year-old Wall Street firm Lehman Brothers filed for bankruptcy. Lehman’s collapse helped trigger the Great Recession.<\/p>\n

Three months later, the U.S. economy collapsed under the weight of a near-total meltdown in housing prices. Riding to the rescue, the Federal Reserve cut interest rates to nearly zero.<\/p>\n

That’s the lowest level it’s ever been in the 243-year history of the United States.<\/p>\n

Wall Street pundits called it zero interest-rate policy, or ZIRP.<\/p>\n

The Fed believed ZIRP would encourage people to borrow and invest in riskier assets with higher yields. This “wealth effect” would then stimulate the economy.<\/p>\n

The policy did eventually help pull U.S. markets out of a recession. But there were unintended consequences…<\/p>\n

Today, I’ll tell you what those consequences are—and more importantly, what you can do about it…<\/p>\n

The War Against Savers<\/strong><\/h2>\n

If you’ve been following my recent essays, you know I’ve been warning you about the “war” against savers<\/strong><\/a>.<\/p>\n

It’s not an ordinary war. It has nothing to do with the Middle East. But you’re paying for it.<\/p>\n

Let me explain…<\/p>\n

Since the Great Recession, the Fed’s ZIRP has made it difficult for ordinary Americans to find safe income with a decent yield.<\/p>\n

Today, the rate on the benchmark 10-year Treasury note is hovering just above 1.8%. That’s nearly two-thirds less than its 100-year historical average of 4.6%.<\/p>\n

Other traditional income products yield virtually nothing…<\/p>\n

For example, the average yield of a checking account is just 0.06%. For every $10,000 deposited, you’ll get back only $6 at the end of the year.<\/p>\n

In 1995, you could have earned 4% on your deposits. That’s $400 annually on a $10,000 deposit—or nearly 70x more than today.<\/p>\n

But for some savers, rates are even worse. According to financial services firm Bankrate, the most common yield for checking accounts remains at 0.01%.<\/p>\n

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And it’s not just checking accounts…<\/p>\n

Across the board, conventional, short-term, fixed-income assets are yielding historically low rates. Here are the average rates banks pay on deposits of less than $100,000:<\/p>\n