As We Predicted in August, the ECB Is Ending QE...

Phoenix Capital Research's picture

The European Central Bank (ECB) just announced it would be tapering QE.

We’ve been predicting this since August. The signs were there. But few if any listened. Some 80% of Wall Street expected that the ECB would be INCREASING QE.

Countless “gurus” including some of the biggest names in investing predicted the same thing. 

All of them were wrong.

This announcement has completely changed the investment landscape. And most investors will be getting taken to the cleaners as a result.

So here is our next major prediction.

The Euro will be going to 120 if not higher.

This sounds insane today, but in six months I guarantee that everyone will be looking back asking, “how did we miss this?”

The $USD in contrast will be plunging to 92 if not lower. The $USD bulls are going to be absolutely slaughtered.

Time-stamp this. We’ll be happy to return to it in the future.

For more financial insights and investment ideas you won’t find anywhere else, swing by www.gainspainscapital.com

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

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spencer's picture

Graham you are wrong again.

It doesn't work this way - your prediction is a low probability scenario at best.
QE is responsible for backstop - the currency falls if the backstop is removed.
Euro might actually fall because of this decision.

This is exactly the same mechanism that pushed gold up this year - FED removed backstop and caused risks to elevate causing gold buying wave.

This time however - it is European bonds that will fall and the flow will benefit gold again.

It is very bullish for gold. Not for Euro.

Don't be long EUR because you will lose money.

You can always get back with me next year and say I was right and thank me.

the grateful unemployed's picture

more to the point the dollar bulls are in for a shock. i see a lot of markets topping, gold broke down after an extended top, now the dollar is setting up the same technical formation, and it may break as well, it really doesnt matter if these things actually trigger a signal you see how the algos went nuts when they saw a dow theory confirmation yesterday. so some bull traps are laying in store probably. ive been basing my observation on the 94 bond market crash, to see if things match up, and so far they do. now the ECB has to taper to give the fed some elbow room to raise rates, which let me guess is not 100% as everyone thinks. they can stick a lot of dovish language in the move and the amount of RRPO they plant matters as well,  they could turn the rate hike into QE very easily.

NugginFuts's picture

Ok, printed it. See you in six months. 

Jtrillian's picture

Announcing that you are ending stimulus while simultaneously admitting you are expanding it out nine months is the epitome of an oxymoron. 

Do not trust them.  They can only be judged by their actions, not their words.  Do not put it past the central banks to attempt to hide their stimulus moving forward. 

steveo77's picture

Coined it I have "Peak Life"

https://nukeprofessional.blogspot.com/2016/12/us-life-expectancy-going-down-overall.html

have I missed anything in this list?

1) Rampant corruption and collusion/capturing of US paid scientists at the EPA, CDC, NRC and more
2) Legalization and promotion of GMO "foods"
3) Massive increase in use of Glyphosate and other endocrine disruptors
4) Expansion of Big Pharma
5) The Monsanto protection act
6) Fukushima, and release of 2000 atomic bombs worth of radiation, and the coverup of such
7) The financial rape of the entire United States via the 2008 "crisis" and the knowledge that the fat bankers just stole our money and future, and they walk amongst us without procsecution.
8) The blatant power grab by the NWO jackals via Paris Climate "Agreement" and Pacific Trade agreements.
9) The capture of the Pope as a tool of the NWO.
10) Total media corruption and propoganda spreading
11) A Muslim loving president, who sneers as the USA is hobbled
12) Continuous warfare
13) Higher taxes
14) Exposure of massive and highly illegal spying program by Big Fed
15) Militarization of police forces, with predictable outcomes
16) NWO Bilderbergs funding riots in America, pitting everyone against everyone.

Richtus Heb's picture

Nobody in the ECB is going to taper anything.

They just invented self printed fiat paper bills as a new form of collateral.

Self printed collateral is about the safest medium to save the broken banks.

Why didn't we invent this stuff 100 years ago?

 

http://www.zerohedge.com/news/2016-12-08/ecb-introduces-cash-collateral-...

gmrpeabody's picture

Good news used to be bad news, but currently good news is good news which really does make it bad news. And bad news isn't always bad...

OpTwoMistic's picture

The EURO is going away, then the dollar.  Markets will not matter.

Got gold?

The_Real_Fly's picture

Wait a sec. They just EXTENDED programme by 9 mo or 540b euros. How is that ending QE or tapering it?

jmack's picture

forget it, he's rollin'