Posts by Adam Baratta

May 13, 2016 |

What's Next From Central Banks?

Federal United States

Although the Federal Reserve has recently abandoned its policy of zero interest rates and has put an end to (at least for now) its quantitative easing program, the era of QE and ultralow interest rates around the globe may be far from over. This past week, the Fed announced it would hold interest rates at current levels although a hike or two still remains on the table for June and possibly December. In a surprising move, the Bank of Japan elected this week to do... Continue Reading

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April 29, 2016 |

Is the Global Economy Entering a Period of Deflation?

Financial Crisis

Does debt work? This question already appears to have found an answer, and the coming years could reinforce the notion that the massive amounts of debt accumulated around the world are due at some point, and a price will have to be paid. That day could be closer than many realize… Take a look at how equity markets began 2016. The Dow Jones saw its worst start on record, the S&P 500 tumbled, and crude oil prices continued their slide to trade below $30 per... Continue Reading

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April 20, 2016 |

Gold and the Presidential Cycle

USA Flag

According to the theory of the Presidential election cycle, U.S. stocks experience weakness in the year after the election. The cycle then may revert back to stronger equities until it is time for the next election. What may drive initial weakness in equities followed by a rebound? The answer is reforms, new policies and a degree of uncertainty. Think about it this way: When a newly elected President takes office, he or she may look to deliver on plans discussed on the campaign trail, even... Continue Reading

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April 15, 2016 |

The Coming Bear Market in Stocks

sign of strength

In general, a bear market is a market that has declined twenty percent from its high. This drop becomes especially significant when multiple stock indexes are down twenty percent or more and when these declines have lasted for at least several weeks. Are U.S. stocks currently in a bear market? No. Are global equity markets in bear market statuses? Yes. Could U.S. stocks be headed for a bear market? Absolutely. While no one can see the future, the domestic stock market could potentially be at... Continue Reading

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April 6, 2016 |

Get Your Hands on Silver While You Still Can

Silver One Dollar

While you often hear gold is even more precious than silver, it’s silver that could potentially run dry before gold. If you already own physical gold, wouldn’t it make sense to consider adding silver as well? Some estimates put the total amount of silver already mined at 1.5 million tons. Sounds like a lot of silver right? Wrong… You see, we have lost much of what has previously been mined. A significant portion of that 1.5 million tons of silver was never recycled and likely... Continue Reading

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February 22, 2016 |

Expect a Recession by Year End Says Stockman

  In this clip, Former Reagan OMB Director David Stockman talks with CNBC’s Jackie DeAngelis and the Futures Now traders about a potential recession. He states, “This time it’s different… we are looking into the jaws of a recession, it will become more evident by the week … [Everyone] in the market is going to panic when they face recession and the Fed can’t do anything…”

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February 16, 2016 |

Shedding Some Light on the U.S. Labor Market

Money Stacks

The U.S. labor market is a focal point for markets and investment. On the first Friday of every month, the U.S. Department of Labor reports its latest non-farm payrolls data for the previous month. This report is highly anticipated by investors and certainly has the ability to move markets. Over the past year, as the U.S. Federal Reserve weighed the possibility of raising interest rates-and eventually did-the jobs data was said to play a key role in any decision made by the central bank. This... Continue Reading

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February 12, 2016 |

Could A Rebound in Oil Drive Gold Prices Higher?

The ongoing decline in crude oil prices has been covered extensively by the financial media. Over the last year or so, crude oil has fallen from over $65 per barrel to under $30 per barrel, losing over half its value in the process. The recent move towards $30 per barrel has shaken stock markets and driven increasing volatility and risk aversion. What Might this Mean for Gold? It is no secret that gold and oil, or “black gold,” often exhibit a positive correlation. As crude... Continue Reading

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