Posts by Adam Baratta

March 25, 2019 |

How About a Quick 18% Drop in Stocks?

drop in stocks

Some analysts have been sounding the alarm bells for a drop in stocks for some time now. Although equities have not thus far fallen apart as some had suggested, the situation has become increasingly cautious. Another analyst recently came out with a call for an 18% drop in stocks. This, however, is one analyst you may want to listen to. His name is Gary Shilling, and he has a knack for calling turning points in the economy. Having called major turns in the 60s, then... Continue Reading

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March 13, 2019 |

EU Slowdown May Be Worse Than Expected

EU slowdown

It’s no secret that the Eurozone continues to struggle with a slow economy. The EU has seen many of the ups and downs that have been seen in the U.S. in recent years while also having to contend with numerous other issues such as massive sovereign debts and policy disagreements. Now, the ECB has slashed its growth and inflation forecasts for the year while also lowering the outlook for 2020 and 2021. This would seemingly acknowledge the fact that the slowdown being seen in Europe... Continue Reading

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March 11, 2019 |

The Dollar Is Going Down

sinking dollar

Is a significant dollar decline in the future? Over the weekend, Fed Chairman Jerome Powell was interviewed by CBS’ “60 Minutes” and discussed a range of topics. The Fed chief has been widely criticized by U.S. President Donald Trump (who appointed Powell) in recent months over the central bank’s plans to normalize monetary policy through interest rate hikes. Under Powell, the Fed raised interest rates four times in 2018 and could look to hike them further in the months ahead. The central bank began the... Continue Reading

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March 7, 2019 |

The Geopolitical Landscape Could Get Worse

geopolitical trade war US China

There has been no shortage of issues for global financial markets to grapple with over the last several months. Not only does the U.S. has numerous domestic challenges to deal with, the country is also involved in some high-stakes disagreements on the international stage and will need to closely monitor others. The geopolitical landscape could get worse. A lot worse. Here are three major issues that have the potential to hit global financial markets hard and fuel a significant flight to safety: North Korean Nuclear... Continue Reading

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March 2, 2019 |

A New Debt Milestone

debt milestone

The U.S. Government debt recently topped an astounding $22 trillion reaching a new debt milestone. The debt is composed of two components: debt held by the public and debt held by government agencies. The public debt is continuously marketed to investors all over the world. This debt is used to fund the deficit as well as to pay off maturing debt. Because investors demand a return on their investment, public debt is subject to interest charges, furthering the ongoing deficit. For a government to manage... Continue Reading

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February 22, 2019 |

Don’t Say You Weren’t Warned

warned

The last several weeks have seen developments on multiple fronts that could potentially shape the next major market meltdown. The Fed’s reluctance to continue shrinking its balance sheet must be at the top of the list. The writing on the wall has never been clearer: Stock markets cannot maintain current levels and wouldn’t have gotten here in the first place without the massive stimulus efforts of the Fed. In other words, stocks are currently trading at “artificial” levels. Stock valuations have not reached current levels... Continue Reading

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February 15, 2019 |

Significant Signs of Strength

strength in gold bars and coins

There are significant signs of strength for gold showing lately. The gold market is higher today, gaining over $4.00/oz. Although that itself may not be noteworthy, it is interesting that gold is climbing today despite some serious headwinds that might normally weigh on the metal. The benchmark Dow Jones Industrial Average is up over 350 points in early action today. There has reportedly been some solid progress made in the U.S./China trade negotiations that took place in Beijing this week. Officials appear to have at... Continue Reading

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January 31, 2019 |

Another Week Another Fed Meeting

Another Week Another Fed Meeting After finally breaking through key resistance around the $1,300 area last week, the gold market is taking a bit of a breather in early action today. The market appears poised for further upside, and a solid close above resistance or several consecutive closes above could add credibility to the recent breakout. The market will have numerous issues to contend with this week, including the end of the government shutdown, corporate earnings and the Fed meeting on Wednesday. Gold may see... Continue Reading

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January 28, 2019 |

Leading Indicators Decline

QE, QE4

According to a report by marketwatch.com, leading indicators declined by .1% in December in what may be viewed as another sign of a slowing U.S. economy. Of note is the fact that the index fell in two of the final three months of 2018, quite possibly due to the current slowdown gathering steam. The latest disappointing economic report is just another in what has seemingly become the trend of late. Several key components of the economy, especially in the manufacturing sector, have been showing weakness... Continue Reading

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January 24, 2019 |

A Great Example

Brexit

When discussing the numerous potential benefits that come with gold ownership, the topic of gold being the only true form of money is always a focal point. The yellow metal has been regarded as such for centuries and does not carry the risks that come with fiat currency. The notion of gold being the only real form of money that exists is evident in the U.K. currently. With a March 29 deadline for a Brexit deal quickly approaching and the potential for a hard Brexit... Continue Reading

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