Porter Stansberry from Stansberry & Associates Investment Research published a great article last week, in which he lays out some historical precedence for the Fed’s ‘twist’ and what happened last time it was implemented. He explains why it could mean serious pain down the line.
Then he outlines an investment strategy to hedge yourself against the coming onslaught, like investing in ‘core materials’ which he considers to be things like oil, metals, critical infrastructure like ports and rail. He also outlines some criteria with which to judge equity investments if this scenario unfolds.