Posts by Adam Baratta

Major Hurdles Down the Road

There are numerous reasons to own a significant allocation in gold. In fact, given the current economic and geopolitical landscape, it has arguably never been more important to have a significant allocation in this key asset class. Although the list of compelling reasons to own the metal can be quite extensive, there are three major themes that investors need to consider as economic and geopolitical dynamics shift. The economic expansion and bull market in stocks is likely at or near its end. As the global... Continue Reading

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Fresh QE Has Arrived

The gold market rose to the highs of the day yesterday as markets reacted to commentary from Fed Chief Jerome Powell. Mr. Powell, at the annual NABE conference in Denver, said that the central bank will start expanding its balance sheet soon. He went on to state that the central bank also remains open to further rate cuts, citing risks to the global economy. Of note is the suggestion by Powell that this is in no way QE. He was quoted as saying “This is... Continue Reading

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It’ll Keep Going

Recent pieces of key economic data have not painted a rosy picture. ISM manufacturing and services data have both shown significant declines, and the global financial market is now getting increasingly worried about the prospects for a recession in the U.S. Markets are now pricing in another Fed rate cut this month, and the central bank could even allude to further cuts if the data does not rebound. Although the risks of recession do appear to be on the rise, the next major recession could... Continue Reading

Another Warning Sign

There has been no shortage of talk about the ongoing global economic slowdown. It seems that there is a constant supply of fresh data suggesting that the slowdown is not only ongoing but could be accelerating. An ongoing slowdown, or even recession, should not come as a huge surprise at this point. The current expansion has gotten quite long in the tooth and began to falter as soon as the Fed tried to normalize monetary policy. In what may be considered another shot across the... Continue Reading

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No Shortage of Bullish Catalysts

The gold market has shown some significant upside in recent months, and with good reason. There are a variety of issues currently working in gold’s favor, and a strong fundamental and technical backdrop could keep the metal on the offensive. Regardless of whether the Fed cuts rates further or how much, the current state of the global economy and geopolitical landscape could be supportive for the metal and other hard assets. Here are three issues that may make now the ideal time to build a... Continue Reading

Just Another Reason

The current economic and geopolitical landscape is filled with potential landmines, and the climate just got even more tedious. Over the weekend, an attack on Saudi oil facilities reportedly cut production by some 5.7 million barrels per day, or over half of the Kingdom’s production. This amount accounts for about five percent of total global oil supply and could send crude oil prices soaring. Brent crude jumped by about 20 percent after the news, while WTI also made a significant double-digit leap. Thus far, it... Continue Reading

Is a Major Currency Debasement Ahead?

The U.S. Fed and other global central banks are in the process of easing monetary policies again. Although interest rates got nowhere near previous levels during the Fed’s recent tightening cycle, the central bank has decided that it is time to start cutting again. The Fed is not cutting from only 2.5% instead of 5.5%, however. The ECB tomorrow will present its latest plans to boost the region’s economy which will likely include a bazooka of rate cuts and fresh QE. Other central banks are... Continue Reading

Fed Still on Track to Cut

The highly anticipated jobs report for August showed the U.S. added just 130,000 jobs, a significant downside miss from expectations for 150,000 new jobs added. The unemployment rate was steady at 3.7 percent. This figure looks especially weak compared to the ADP employment report released earlier in the week, which showed a gain of 195,000 jobs when market expectations were looking for 140,000 jobs. The jobs data falls into the camp of the policy doves who want to see further rate cuts. The Fed will... Continue Reading

Appetite For Risk

The stock market has put together a decent run over the past week as investor appetite for risk has seen an uptick. Some optimistic commentary about the ongoing U.S./China trade war is the primary catalyst for equity gains this week, and investors are hoping that some significant progress may be made at the negotiating table in the weeks ahead. The stock market has a tendency to turn on a dime, however, and any negative developments concerning the trade war could send stocks sharply lower again... Continue Reading

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The Stage is Set

The gold market remains on the offensive today even as stocks try to recover some of last week’s declines. The stage is set, as the market continues to put distance between current price and the $1500 level and could make a significant run at $1700 or higher in the next few weeks. The buying frenzy in gold is being stoked by several factors that will likely keep the market moving higher. Here are three reasons why gold is likely to continue its recent ascent and... Continue Reading

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