Posts by Adam Baratta

August 7, 2017 |

WannaCry Hackers Finally Cash Out

It’s been about three months since the WannaCry ransomware attack, and those behind the attacks have finally cashed out. This ransomware attack crippled computer systems, encrypting files and charging the owners anywhere from $300 to $600 to get the “keys” to unlock their files. The attack prevented a U.K. emergency room from accepting patients, shut down a Spanish telecommunications company and more. The money, all told about $140,000, has been sitting in three separate bitcoin wallets for 12 weeks. Naturally, those wallets have been closely... Continue Reading

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August 1, 2017 |

Gold Higher as GDP Disappoints

the dips

The gold market is moving higher again on Friday, touching a six week high. The latest reading of Q2 GDP was released early this morning, and showed a growth rate of 2.6%. Some estimates were looking for a reading of 2.7% following a very lackluster first quarter growth rate of just 1.4%. This report would seemingly add fuel to the dovish camp regarding monetary policy, and may act as yet another reason for the Fed to keep rates relatively low. The Fed has tried to... Continue Reading

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July 26, 2017 |

IMF Slashes Growth Forecasts

The International Monetary Fund, or IMF, recently slashed its growth forecasts for the U.S. for this year and next. The IMF lowered its expectations for growth from 2.3% to 2.1% for this year, and from 2.5% to 2.1% for 2018. Needless to say, this is far below the 4% growth target that has been discussed in recent months and it remains stubbornly below the 3% mark. The IMF listed numerous factors regarding its decision to lower forecasts, with a very poor showing in the first... Continue Reading

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July 20, 2017 |

Is Gold’s Future Looking Brighter?

breakout is brewing

Gold could very well be in the process of making a long-term bottom. Although the yellow metal has been on its heels in recent weeks, gold has held up quite well under numerous potentially bearish circumstances. A more hawkish Fed, higher stocks and strong appetite for risk have all played a role in recent weakness. The question, however, is will it last. Some believe that gold could be turning the corner. In a recent article from Kitco.com, analysts from Credit Suisse voiced a theory about... Continue Reading

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July 14, 2017 |

Yellen Comments Deemed Dovish

FOMC

In what may be the most significant commentary of the week, Fed Chairwoman Janet Yellen’s prepared remarks have been released ahead of her testimony before the House Financial Services Committee today. Ms. Yellen alluded to the pace of further rate hikes being very gradual, and it seems that rates will not reach levels seen in previous tightening cycles. Investors will be paying close attention to her commentary before the committee later today, as well as to the Q&A session to follow. You have to wonder... Continue Reading

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July 10, 2017 |

Look Out Below

Central Banks Are Still

The next major market downturn could make the market meltdown of 2008 and 2009 seem like a walk in the park. There are numerous potential issues that could fuel a major sell-off in stocks and risk assets, and declines well into the double digits are a distinct possibility. Gold is often referred to as a type of portfolio insurance, and now may be the ideal time to consider adding this key asset class to your portfolio. Before you shrug off the notion of owning hard... Continue Reading

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July 4, 2017 |

Insurance No Longer Optional

House of Cards

These are scary times we are living in, scary times. Although on the surface things may look grand and rosy, peeling back the onion shows an economy on shaky ground, a massive Fed balance sheet, geopolitical turmoil and stock valuations that may be considered “out of the stratosphere.” This charade could continue for some time, but the endgame may remain unchanged. Stocks could be setting up for one of the most, if not the most, significant crash in history. Although many may look to put... Continue Reading

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June 28, 2017 |

Are Central Banks warning About the Next Major Crash?

Although 2008 – 2009 may seem like a long time ago at this point, many will remember the financial market mayhem like it was yesterday. Numerous investment professionals and even central bankers are now sounding the alarm bell, citing some eerie similarities between then and now. High-risk lending has been on the rise over the last year or so, and it was high-risk lending that triggered the mortgage meltdown in 2008. It is easy to understand how such lending is one the rise, however. GDP... Continue Reading

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June 22, 2017 |

Is Slumping Crude Oil a Bad Sign?

Oil is hitting fresh 2017 lows in recent trade, and it is certainly having an impact on equities. “Black gold” traded below the $43 per barrel level today, and all signs appear to be currently pointing to ongoing downward pressure. Oil can potentially be a good barometer of overall economic activity, and the recent slide in prices to their lowest levels of the year cannot be ignored. Continuing worries over a global oversupply are preventing any significant rise in prices, and until that oversupply is... Continue Reading

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June 16, 2017 |

Inflation Expectations Remain Subdued

This has been seen before and will likely be seen again. The Fed raised interest rates on Wednesday afternoon by 25 basis points in a move that was widely expected. The twist, however, may be in the differing outlook on inflation between the Fed and the markets. One need only look at the latest reading on the Consumer Price Index to see this. On Wednesday, the latest reading on CPI registered a figure of -.1%. Not only was the core reading a full tenth of... Continue Reading

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