Posts by Adam Baratta

February 13, 2018 |

Another Reason to Diversify Away From Stocks

This week has certainly been one for the books. Massive swings in stocks, coupled with the largest spike in volatility ever recorded have likely put more than a few investors out of business over the last several sessions. It may get worse. The fear of inflation and rising bond yields have definitely weighed on stocks. There are other forces at work as well, however, that may be adding fuel to the fire. It’s no secret that some investors may have been making money off of... Continue Reading

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February 7, 2018 |

Are Higher Yields Starting to Take a Toll?

decline for stocks

The stock market saw major declines on Friday, as the Dow Jones Industrial Average shed over 700 points. Friday’s sell-off, and weekly performance for the indexes, was the worst in some time. Unfortunately, it could be just the opening salvo by stock market bears, and further declines could be ahead. The current risk-off mentality is likely being fueled by several factors, but rising interest rates are, without question, a major catalyst for declining stocks. On Friday, yields on the benchmark ten year note hit 2.85%,... Continue Reading

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January 31, 2018 |

Is FOMO Finally Here?

Stocks have seemingly climbed higher with little effort for some time now. In fact, the stock market has made it look easy. Ultra-low rates, previous QE, increasing corporate earnings-whatever the primary drivers of higher stocks may be, the bull market is not going to continue indefinitely. Stocks have recently been moving higher on the idea of lower corporate tax rates and higher profits, less regulation, the potential for higher wages and other factors. Also at work, however, is another catalyst. Only this catalyst can often... Continue Reading

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January 26, 2018 |

The Dollar is Getting Weaker

race to the bottom

Gold is seeing prices pop on Wednesday, as the dollar index declines to a 4.5 month low. The dollar index appears to have put in a long-term top at this point, and looks both fundamentally and technically weak. This weakness could potentially send the greenback even lower-dramatically lower-from current levels. The buck is seeing selling pressure today as Treasury Secretary Steve Mnuchin talks about how a weaker dollar is beneficial for the U.S. economy. His comments were made in Davos, Switzerland, at the World Economic... Continue Reading

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January 22, 2018 |

Another Reason to Own Gold Now

Weekly jobless claims were reported at 220,000 this week, the lowest reading in several decades. Other key areas of the economy, such as manufacturing and housing appear to be on solid footing while economic optimism remains extremely high. Through all of the recent data and market signals, one thing is clear: Despite still running below the Fed’s desired 2% target, inflation is picking up. Job creation, rising crude oil prices and rising yields seem to back up that notion. The benchmark 10 year note is... Continue Reading

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January 15, 2018 |

A Different Perspective on Risk

Washington Gold Bar

Risk and control of it is perhaps the single most important theme for investment success. Without risk, there can be no reward. On the other hand, too much risk can easily wipe out any gains-and more-sending the investor back to square or worse. Like any other issue, risk should also be kept in the proper perspective. Given all of the recent coverage of rising interest rates, it seemed like a prudent time to talk a bit about rate risk as it pertains to gold. It... Continue Reading

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January 10, 2018 |

Current Signals

Gold Fine

The gold market is off to a great start in 2018, and the current rally in price could have room to run. Aside from watching the market move sharply higher in recent trade, there was another development that could be worth noting: The gold ETF, SPDR GLD, climbed for 11 consecutive sessions before finally seeing a down day last Wednesday. GLD is the largest gold-backed ETF. Why is this worth paying attention to? This would seemingly be indicative of significant inflows finding their way into... Continue Reading

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January 4, 2018 |

The Beginning of Something Bigger?

to remain

The gold market is kicking the New Year off right, and the market is showing some very impressive signs of strength. The market has a number of issues that could potentially fuel higher prices in 2018, and outlined below are what could be the three primary drivers of higher gold as the New Year gets started. Dollar weakness: The dollar index just finished its worst year since 2003, declining by some 10 percent. This finish also was the first losing year for the currency since... Continue Reading

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December 29, 2017 |

Gold Gearing Up For 2018

The gold market has been quietly continuing its recovery from the swing low seen a few weeks ago, and the metal is poised to get the New Year off to a great start. The market has an improving technical posture, and more investors appear to be taking notice. The New Year could be big for the gold market, as numerous market forces could potentially fuel a significant price rise. In fact, overall market volatility could make a dramatic return in 2018, and it seems that... Continue Reading

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December 26, 2017 |

Now is the Time

Economic Indicators

As 2017 draws to a close, now is the time to take stock of your holdings and to plan ahead for the challenges of 2018. Constantly changing market dynamics as well as economic and geopolitical influences necessitate a proactive approach to investing, and there is no better time to get started than right now. The passage of the Trump administration’s tax overhaul could potentially fuel an economic boom, although its effects may take some time to trickle down. With or without increasing economic activity, there... Continue Reading

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