It's happening

In partnership with

🚨 MASSIVE LIQUIDITY FLOOD: IT'S STEALTH QE! 🚨

Remember last week I spoke about the repo market having dangerously low liquidity?

Well the Fed has reacted.

The financial system just got a huge, unscheduled liquidity injection. They aren't calling it "QE," but the effect is the same.

The Smoking Gun: SOFR Rate Collapse

• On November 6, SOFR (the $397 Trillion benchmark) COLLAPSED to 3.92%, its lowest level in two years.

• A drop from 4.22% to 3.92% in 6 days is NOT normal. This proves a massive, forced intervention just happened.

• SOFR is the "world's most important number"—it just confirmed a liquidity flood.

What This Means for You

The Fed is throwing cash at the problem because something is "breaking" behind the scenes. This is an emergency response, not standard policy.

The liquidity is instantly flowing into the real economy:

• 💰 Bank Funding: Costs are immediately slashed.

• 🏘️ Mortgages & Loans: Rates drop, encouraging more borrowing and spending.

• 📈 Result: An immediate boost to credit, lending, and asset prices (inflation).

The Fed is Cornered: Rate Cuts Incoming

At the same time, the Fed’s hands are tied.

• The Unemployment Scare: While we don’t have official data due to gov’t blackout, the private data seems to indicate that unemployment is rising to ~4.3%, and this is forcing the Fed's hand. Despite Powell's caution ("a cut is far from a foregone conclusion"), the market sees a December rate cut as highly likely.
  

• The Double Punch: This blend of Stealth Liquidity + Anticipated Rate Cuts will fuel a higher-than-expected market melt-up.

The Unspoken Danger

Cheap money masks broken growth, it doesn't fix it. The central banks are acting in fear, injecting cash.

This isn’t organic growth. It’s cheap money masking structural weakness.
The Fed is effectively papering over recessionary cracks, trying to buy time in a system that’s already under strain.

SOFR’s sudden collapse is the canary in the coal mine. When the “world’s most important number” falls this fast, the stress is already there, it’s just not visible yet.

🎯 Pete’s Takeaway: Follow the Liquidity

Markets run on liquidity, not logic.
When the Fed injects cash, stealth or not, assets respond first and fundamentals later.

That means traders will chase the melt-up, but smart investors will use this phase to position carefully, favoring quality assets that can thrive in a liquidity-driven, inflationary environment.

SPECIAL 11.11 ANNOUNCEMENT!

For those who have been watching and waiting for the right opportunity:

Tomorrow is 11.11! We are releasing a once-off special offer for the Stock Market Genius program!

👀 Watch this space tomorrow for details!

Meanwhile check this out 👇️ :

Shoppers are adding to cart for the holidays

Over the next year, Roku predicts that 100% of the streaming audience will see ads. For growth marketers in 2026, CTV will remain an important “safe space” as AI creates widespread disruption in the search and social channels. Plus, easier access to self-serve CTV ad buying tools and targeting options will lead to a surge in locally-targeted streaming campaigns.

Read our guide to find out why growth marketers should make sure CTV is part of their 2026 media mix.

Learn more.

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.