Posts by Adam Baratta

June 5, 2018 |

It Will Only Get Worse

The recent spike in market volatility seen this past week based on unfolding events in Italy should only serve to underscore the importance of being hedged against increasing volatility and rising yields. Although markets are seeing a sense of calm return the last couple of days, the EU-and global markets-remain vulnerable to geopolitical developments that threaten the status quo. It is also important for investors to understand a critical point: That without global central banks still pumping money into the financial system, things could have... Continue Reading

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May 31, 2018 |

Is the EU Headed For More Trouble?

Just a few years back, the EU, and Greece specifically, dominated the financial media as the nation headed for a major default and bankruptcy. Sovereign debt issues have been an area of focus in the region for some time, and there has been ongoing discussions about the health of the union for years. Those discussions are likely to pick up in pace once again, as recent developments in Italy are a major cause for concern. The country is headed for new elections later in the... Continue Reading

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May 24, 2018 |

Now is Time to Get Ahead of the Curve 

Just Another

The commodity bull market has seemingly begun. Oil prices are now trading at multi-year highs, with Nymex crude trading over $72 per barrel and Brent crude trading around the $80 level. Crude has been on the offensive even as the dollar index has also moved up to multi-month highs. The strength being seen in oil is likely due to several factors, however, recent economic strength and the potential for lower supplies are two of the main drivers. Some analysts have already begun to suggest that... Continue Reading

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May 18, 2018 |

Dips are the Best Time to Buy

Coins and Watch

The best time to buy an asset is when it is on sale. Given the recent 2% decline in the price of gold, current levels could fall into that category. Short-term dips in the price of gold should not be feared, but should be welcomed. This is a great opportunity buy gold at a lower price point. There are those that will argue that an asset should not be bought on weakness, but should rather be purchased when it is showing strength. This is a... Continue Reading

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May 15, 2018 |

Is a Big Drop on the Way?

Stocks have been moving higher for the better part of a decade now. It is noteworthy that during the recent bull run, the market has seen very little in terms of serious or protracted corrections. Stronger economic data, more jobs and higher wages have all recently fueled the market’s ongoing upside, but at some point, the stock bulls will run out of ammunition. In fact, the economy is becoming overdue for its next recession, and it is also not clear just how long the recent... Continue Reading

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May 14, 2018 |

Why Investors Must Watch the Dollar

After seeing months of lower prices, the dollar index has been on the rebound lately, trading at a 4.5 month high in recent sessions. The upside in the dollar has kept a bit of a lid on gold prices-for now anyway-and the relationship between the metal and the currency is a very important one to understand. Like many other commodities, gold is denominated in dollars. This means that when the dollar is higher in value, gold becomes relatively more expensive for buyers in other currencies.... Continue Reading

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May 2, 2018 |

Is the Fed Behind the Curve?

Interest Rate Block

Inflation has been a topic of discussion for some time now as the Fed seeks to normalize monetary policy. The Commerce Department reported today that the PCE (personal consumption expenditures price index) jumped to 2% year-over-year in March. That 2% is the Fed’s desired annual target for inflation. Inflation is gaining further traction due to a tightening labor market as well as recent tax cuts that are providing economic stimulus. Just last week, the government reported that wages and salaries saw their biggest increase in... Continue Reading

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April 26, 2018 |

Has the Tipping Point Finally Arrived?

the dips

Stocks have seen some pressure in recent days, as more and more investors believe that the bear market in bonds has finally run its course. With the 10 year note yield currently right around the 3% level, investors seem to be getting increasingly anxious. The 3% level in yields represents an important psychological barrier that, if broken, could see a sharp and rapid rise even higher in rates. Some analysts have already hiked their year-end predictions for the benchmark 10 year note, calling for yields... Continue Reading

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April 20, 2018 |

Is the Next Major Commodity Cycle Getting Started?

Global equity markets have dominated much of the financial media in recent years. The ascension of stocks following the major crash of 2008-2009 is certainly a story worth telling. Many investors who bought in heavily around those lows have likely amassed a small fortune as the market has continued to climb. Nearly a decade into the bull market, however, the market is finally showing some significant signs of topping. Recent volatility could be a good indicator of a topping process already underway. Bull markets do... Continue Reading

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April 16, 2018 |

Is It Really a Dollar Rally?

Economic Indicators

Gold prices have been moving higher in recent weeks, and showing some signs of underlying strength. As can be expected, the market has seen some buying interest come in as geopolitical tensions escalate. Last weekend’s chemical weapons attack in Syria had investors seeking out the perceived safety of gold and caused some selling in equities. A recent comment from President Trump, however, has stocks rallying today as risk appetite has returned. As stocks move higher today, gold is moving lower. Although such a move should... Continue Reading

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