We’re at the most important part of the cycle, and it’s unlike anything anyone could have ever predicted. While retail is sleeping or leaving altogether, there’s a possibility that we’re about to enter a phase of rapid liquidity expansion…the kind that fuels crazy upside in risk assets. But don’t get all excited, because I’m going to end this post with an urgent warning. In regard to what the FED is getting ready to do, Ray Dalio basically went viral today saying, “Any way you cut it, it’s an easing move” Dalio essentially pointed out that in the past, QE came when assets were cheap… when the economy was weak…when inflation was low. Back then, it was “stimulus into a depression.” But this time, it’s the opposite. Asset valuations are at highs. The economy is pretty strong. Inflation is still above target. So this won’t be easing into a crash. It’ll be easing into a bubble. Let me break this down simply: When the Fed eases into strength, liquidity surges. Risk-taking returns. Money floods into anything with a long runway…tech, AI, crypto. Printing. Into. A. Bubble. If the Fed’s balance sheet begins to expand, if rate cuts hit while deficits stay huge, that’s the melt-up. This all sounds bullish, and it comes with great opportunity. But if this all happens to play out like this, this comes with a MASSIVE WARNING… The same liquidity that inflates the boom…will create an insane exit. If something like this happens, we have to have a plan right now. And make a crucial mental note to stay unemotional if a melt up does happen. Plan your exits and take profit. As always, no one knows exactly what will happen next, so be prepared for every single scenario.(Dan Gambardello)