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♟ I Broke Wall Street’s #1 Rule Yesterday

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Image of a person tearing up a piece of paper that says "Rules"

"Some rules are made to be broken. Especially when breaking them is backed by $36.48 trillion reasons."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

Dear Reader,

There's a Wall Street axiom: "don't fight the Federal Reserve."

Well, some rules are made to be broken.

While the Fed signals more cuts and markets celebrate, I'm seeing something different.

Core inflation just hit 3.1% - the highest since February. The dollar's down 10.83% year-to-date.

Household debt just reached a record $18.39 trillion. And the S&P's market cap to GDP ratio? 209%.

That's dot-com bubble territory.

The Fed just cut rates into this mess. Here's why volatility might be the best bet you can make for the next few months.

Here's why:

1. If inflation is already high, rate cuts can worsen the problem

Core CPI is sitting at 3.1% - way above the Fed's 2% target. Food prices jumped 0.46% last month, energy spiked 0.69%.

Rate cuts make credit cheaper, boost demand further, and push prices up even more.

This is like stepping on the gas when your engine's overheating.

Spoiler alert: It doesn't end well.

2. Lower rates weaken the national currency

The dollar just hit a 3.5-year low at 96.636 before yesterday's cut. While this helps exporters, it raises the cost of imports. In an economy dependent on imported goods (which is everything), that worsens inflation.

Every rate cut makes the dollar weaker. Hope you like paying more for literally everything.

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3. Cheap money inflates dangerous bubbles

Markets are already in insane territory. S&P 500 market cap to GDP at 209%? CAPE ratio at 37x?

We're in bubble land, and the Fed just made cheap money even cheaper.

This pushes investors into riskier assets - stocks, real estate, speculative ventures. These bubbles later burst and damage the broader economy.

Translation: We're building a house of cards in a hurricane.

4. More borrowing today means instability tomorrow

Household debt just hit a record $18.39 trillion, up $185 billion last quarter. Credit card debt at $1.21 trillion. Government debt at $36.48 trillion.

Lower rates encourage even more borrowing. But when rates rise later (and they will when inflation forces the Fed's hand), heavily indebted households, companies, and governments struggle with repayments.

That's when the real chaos begins.

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YOUR ACTION PLAN

Rate cuts work best when inflation is stable, confidence is healthy, and the economy just needs a nudge. They backfire when inflation is high, confidence is shaky, or debt and speculation are already excessive.

Guess which scenario we're in right now?

The Fed thinks they're being accommodative.

What they've actually done is set up the most tradeable volatility environment we've seen since the financial crisis. When these fundamentals start catching up to market reality, the whipsaws are going to be violent.

And that's exactly why my partner, Bryan Bottarelli is going to show you how to profit from it.

The next 90 days could be the most volatile - and profitable - three months we've seen in years.

Bryan's developed a strategy that thrives on exactly this kind of Fed-induced chaos.

We're talking about targeting overnight gains of 88%... 109%... even 157% when the market flips from euphoria to panic.

Wednesday, September 24 at 2 p.m. ET, Bryan goes live to reveal his Fed Shockwave strategy - the exact approach that delivered an 85% win rate during massive volatility periods.

Because when Wall Street's favorite rule becomes a contrarian opportunity backed by hard data, timing isn't just important - it's everything.


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