Posts by Adam Baratta

Negative Yields on the Rise

The German Government bond recently sank back below the 0% threshold for the first time since 2016. The decline in yields is part of an overall trend as investors become increasingly skittish about the prospects for the global economy. According to a recent article from MarketWatch, “the total sum of negative-yielding debt in bond issues represented in the Bloomberg Barclays Global Aggregate Bond Index stood at nearly $9.7 trillion, marking a more than 50% increase from September.” The recent decline in German bond yields put... Continue Reading

The Mueller Report Has Come and Gone… Now What?

The highly anticipated Mueller report has now come and gone. What could have resulted in significant market volatility and a major sell-off has ended up more like a whimper, having little to no impact on markets today. To be clear, however, the report could lead to additional political fighting as Democrats seek to see and release the full report and as other investigations continue. With the special counsel investigation now over, however, investors may again focus their attention elsewhere. The inverted yield curve caught the... Continue Reading

How About a Quick 18% Drop in Stocks?

Some analysts have been sounding the alarm bells for a drop in stocks for some time now. Although equities have not thus far fallen apart as some had suggested, the situation has become increasingly cautious. Another analyst recently came out with a call for an 18% drop in stocks. This, however, is one analyst you may want to listen to. His name is Gary Shilling, and he has a knack for calling turning points in the economy. Having called major turns in the 60s, then... Continue Reading

EU Slowdown May Be Worse Than Expected

It’s no secret that the Eurozone continues to struggle with a slow economy. The EU has seen many of the ups and downs that have been seen in the U.S. in recent years while also having to contend with numerous other issues such as massive sovereign debts and policy disagreements. Now, the ECB has slashed its growth and inflation forecasts for the year while also lowering the outlook for 2020 and 2021. This would seemingly acknowledge the fact that the slowdown being seen in Europe... Continue Reading

The Dollar Is Going Down

Is a significant dollar decline in the future? Over the weekend, Fed Chairman Jerome Powell was interviewed by CBS’ “60 Minutes” and discussed a range of topics. The Fed chief has been widely criticized by U.S. President Donald Trump (who appointed Powell) in recent months over the central bank’s plans to normalize monetary policy through interest rate hikes. Under Powell, the Fed raised interest rates four times in 2018 and could look to hike them further in the months ahead. The central bank began the... Continue Reading

The Geopolitical Landscape Could Get Worse

There has been no shortage of issues for global financial markets to grapple with over the last several months. Not only does the U.S. has numerous domestic challenges to deal with, the country is also involved in some high-stakes disagreements on the international stage and will need to closely monitor others. The geopolitical landscape could get worse. A lot worse. Here are three major issues that have the potential to hit global financial markets hard and fuel a significant flight to safety: North Korean Nuclear... Continue Reading

A New Debt Milestone

The U.S. Government debt recently topped an astounding $22 trillion reaching a new debt milestone. The debt is composed of two components: debt held by the public and debt held by government agencies. The public debt is continuously marketed to investors all over the world. This debt is used to fund the deficit as well as to pay off maturing debt. Because investors demand a return on their investment, public debt is subject to interest charges, furthering the ongoing deficit. For a government to manage... Continue Reading

How to Make the Most of an Investment in Gold

When it comes to making the most of an investment in gold, there is really one simple rule of thumb to follow: Buy as much as you can. With a long-term view and long-term objectives, the more bullion you can acquire the better. Not only does this strategy on how to make the most of an investment in gold provide the most upside appreciation potential, but it comes with other potential benefits as well. Higher Prices: Simple math tells you that the more gold you... Continue Reading

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Don’t Say You Weren’t Warned

The last several weeks have seen developments on multiple fronts that could potentially shape the next major market meltdown. The Fed’s reluctance to continue shrinking its balance sheet must be at the top of the list. The writing on the wall has never been clearer: Stock markets cannot maintain current levels and wouldn’t have gotten here in the first place without the massive stimulus efforts of the Fed. In other words, stocks are currently trading at “artificial” levels. Stock valuations have not reached current levels... Continue Reading

Significant Signs of Strength

There are significant signs of strength for gold showing lately. The gold market is higher today, gaining over $4.00/oz. Although that itself may not be noteworthy, it is interesting that gold is climbing today despite some serious headwinds that might normally weigh on the metal. The benchmark Dow Jones Industrial Average is up over 350 points in early action today. There has reportedly been some solid progress made in the U.S./China trade negotiations that took place in Beijing this week. Officials appear to have at... Continue Reading