Goldman Sachs (GS) predicts interest rates could surge even higher than it initially anticipated…
The investment bank’s chief economist, Jan Hatzius, projects that the U.S. Federal Reserve will increase interest rates seven times in 2022.
That’s a significantly higher number than its prior hike of four times, as Goldman Sachs expects the central bank will do whatever it can to reduce the U.S.’s stronger-than-anticipated inflation data.
Prior to today’s announcement, the Consumer Price Index (CPI) hit 7.5% in January. That marked the fastest rise in prices since 1982.
Because of this data, Hatzius said the Federal Reserve will likely increase rates by 25 basis points in each of its meetings this year. In this instance, the central bank’s main rate would reach 1.85% after December’s forum.
And given the fact that central bank members held an unscheduled emergency meeting on February 14 to discuss interest rates, many investors are seeing this news as affirmation that now is the time to shift over to more defensive investments.
This includes Costco Wholesale Corporation (COST). Costco owns and runs membership warehouses that sell everything from televisions to fresh foods.
The company is not only one of the top picks among hedge funds, but it has also experienced a major winning streak through the pandemic.
Even though the retail sector has struggled over the course of COVID-19, Costco has continued to report strong financials and a growing share value.
In fact, in its fiscal first quarter, the wholesaler reported earnings per share of $2.98 compared with the estimated $2.62. Costco also said its revenue was $50.36 billion, topping Wall Street’s consensus of $49.65 billion.
And with interest rates poised to climb, analysts anticipate the company will further benefit from spending on consumer staples and household appliances.
So, while it’s an expensive stock – trading at $509.67 per share – Costco’s strong history of share value growth and expected rise in demand should bode well for the company’s financials through 2022 and beyond.
Here's How You BEAT Inflation…Starting Immediately
We just came limping out of the worst January in the markets since the Global Financial Crisis.
But things could soon get much, much worse.
The speculative bubbles in the market are bursting, one by one.
Pot stocks… SPACs… cryptos… Then, suddenly, almost the entire “growth” sector.
I believe we could be on the verge of an 80% crash in the overall market.
So, forgive me for getting a little worked up in this brand-new interview…
Where I lay out all the proof of what's likely coming (soon!) and exactly what to do to protect yourself, beginning today.
But people's lives are on the line…
At minimum, you could see 10 years of market gains wiped out very quickly.
I believe NOW is the only time you can actually do something to protect yourself.
(When the market's already down 30% or more – it'll be too late.)
The worst part is…
Even if I'm completely wrong about an impending market crash… 7% inflation is already destroying your savings right now.
That's not a prediction. It's already here. The highest inflation in 40 years.
Just look at the latest numbers released this morning for January:
Inflation hit 7.5%!
That's the third straight month of multi-decade highs…
And now the U.S. money supply is up five-fold since the beginning of 2020!
But there's a simple and incredibly effective solution…
I explain everything right here.
It has nothing to do with options… short-selling… or “perfectly” timing the market.
Just a group of stocks that are practically designed to BEAT inflation…
And that I expect to outperform everything else in the market over the next 5-10 years.
Including one specific GOLD stock that I think could return you more than 10 times your money if you get in today.
Again: I've put together a very simple, top-to-bottom game plan for beating inflation and the looming market crash.
Please, don't ignore this today…
Go here to see the most important interview of my LIFE while its still available online.