Posts by Adam Baratta

October 28, 2016 |

Could Crude Oil Be The Next Major Bullish Catalyst For Gold?

Oil pipes

The decline in crude oil prices this past year was the subject of many financial media headlines and stories. After trading as low as the mid-thirties per barrel last winter, the oil market has come back, but not without some ups and downs. With several of the world’s largest oil producers possibly getting ready to implement a production freeze or even a production cut, black gold could potentially see further upside from current levels. In fact, the oil market could potentially rise substantially from current... Continue Reading

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October 12, 2016 |

A Bird in the Hand is Worth Two in the Bush

Bubble Pop

Stocks remain not far from recent all-time highs, and you have to wonder if equity investors will keep pushing stock prices further into bubble (we mean new all-time highs) territory. The desire for yield can be a powerful thing, and that thirst for returns has driven equities higher for several years now. In reality, however, it is zero or negative interest rates and a lot of quantitative easing that has driven equity markets to current levels. Investors have essentially been forced to go out and... Continue Reading

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October 6, 2016 |

Is the Next Major Bailout Right Around the Corner?

Life Preserver Euro

It’s no secret that Deutsche Bank has been under pressure. Among other issues, negative interest rates have cut into the bank’s profits. In fact, Deutsche Bank shares have lost nearly 60 percent this year, and worst may be yet to come for the embattled investment bank. Deutsche Bank finds itself in a highly leveraged position, and concerns over the health of the bank are becoming more and more apparent. Last week, news surfaced that some of the bank’s hedge fund clients were trimming their sails... Continue Reading

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September 30, 2016 |

Buckle Your Seatbelts

Central Banks Are Still

Equity markets remain not far from recent all-time highs, and there seems to be an eerie sense of calm in the marketplace. The CBOE’s VIX index, commonly referred to as the “fear gauge,” is showing a reading of less than 15 currently in another sign that perhaps investors have become overly complacent. With a Presidential election looming and a whole host of other key economic issues facing the global economy, the current era of complacency could be about to change-and rapidly. Regardless of who wins... Continue Reading

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September 26, 2016 |

The Party Continues

Dollar Sign

The highly anticipated September FOMC meeting has now come and gone. The Fed elected to hold rates steady by a vote of 7-3. Although this vote may have been closer than many had expected, perhaps more important than the vote itself was the central bank’s economic outlook and commentary. The Fed’s so-called “dot-plot” is pointing to a very gradual pace of rate hikes, with the Fed Funds target rate also being lowered from a three percent target to a 2.9 percent target. It is now... Continue Reading

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September 22, 2016 |

The Elephant in the Room

going on

China’s currency reserves are not what they used to be. According to some estimates, the dollar’s share of China’s reserves has been slashed to a record low, as the world’s second largest economy looks to diversify away from the greenback. Not only that, but China has reportedly been selling U.S. securities. Thu far, this has not caused any type of panic and doesn’t even appear to be on the radar for most investors. You could certainly make the argument that a pullback in buying by... Continue Reading

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September 16, 2016 |

Will the Fed Sink the Ship By Hiking?

without a deal

The debate about the pace and timing of any further interest rate hikes by the Fed has been a primary focus of investors since the historic Brexit vote in late June. Although some data has looked promising, other key pieces of data have been an outright letdown. Due to some of the mixed signals being seen in the data stream, Fed Funds futures have seen frequent changes and markets are currently pricing in only a small chance of a September rate hike. These contracts are,... Continue Reading

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September 12, 2016 |

If Not Now Then Later

House of Cards

As investors look to get back into the swing of things following the Labor Day Holiday and many last minute vacations, their focus remains the same as it has for several weeks, if not months. When will the Fed raise rates again? That is the question that many market participants are still asking. As we wrote previously, last week’s jobs data was essentially a dud, and recent manufacturing data was also not so great. The services sector also showed a surprising and significant slowdown, further... Continue Reading

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September 7, 2016 |

Deutsche Bank Warns Gold Price Should Be Much Higher Based on Central Bank Balance Sheet

central bank graph

Gold could be worth far more than what speculators and traders have determined to be the current spot price. There’s a hidden indicator for the intrinsic price of gold that many investors have ignored. In addition to looking at the cost of mining gold, the level of government debt and total gold production, a major indicator that perceptive investors should pay attention to is central banks’ balance sheets. According to Deutsche Bank’s Michael Hsueh and Grant Sporre, there is a correlation between the rates at... Continue Reading

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September 6, 2016 |

“Rich Dad” Author Robert Kiyosaki’s Thoughts On Investing For The Long Term

Washington Gold Bar

“We’re on the edge of a cliff right now. When you’re investing for the long term in the stock market where there is no connection between stock price and reality, you’re crazy.” –Rich Dad Poor Dad author Robert Kiyosaki In a recent interview with Marketwatch.com, Robert Kiyosaki had some very interesting things to say – things that make a whole lot of sense. When discussing how the rich get rich, Kiyosaki discussed how the rich don’t work for money. He also discussed how one of... Continue Reading

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