Posts by Adam Baratta

Another Week Another Fed Meeting

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Another Week Another Fed Meeting After finally breaking through key resistance around the $1,300 area last week, the gold market is taking a bit of a breather in early action today. The market appears poised for further upside, and a solid close above resistance or several consecutive closes above could add credibility to the recent breakout. The market will have numerous issues to contend with this week, including the end of the government shutdown, corporate earnings and the Fed meeting on Wednesday. Gold may see... Continue Reading

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Leading Indicators Decline

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According to a report by marketwatch.com, leading indicators declined by .1% in December in what may be viewed as another sign of a slowing U.S. economy. Of note is the fact that the index fell in two of the final three months of 2018, quite possibly due to the current slowdown gathering steam. The latest disappointing economic report is just another in what has seemingly become the trend of late. Several key components of the economy, especially in the manufacturing sector, have been showing weakness... Continue Reading

A Great Example

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When discussing the numerous potential benefits that come with gold ownership, the topic of gold being the only true form of money is always a focal point. The yellow metal has been regarded as such for centuries and does not carry the risks that come with fiat currency. The notion of gold being the only real form of money that exists is evident in the U.K. currently. With a March 29 deadline for a Brexit deal quickly approaching and the potential for a hard Brexit... Continue Reading

Fed Chief Jerome Powell Acknowledges Debt Problem

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The U.S. is running massive deficits as the nation’s indebtedness continues to grow. Speaking at the Economic Club of Washington D.D., Fed Chairman Jerome Powell recently acknowledged the issue. In a piece by cnbc.com, Powell was quoted as saying “I’m very worried about it. From the Fed’s standpoint, we’re really looking at a business cycle length: that’s our frame of reference. The long-run fiscal, nonsustainability of the U.S. federal government isn’t really something that plays into the medium term that is relevant for our policy... Continue Reading

The Message is Clear

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Yesterday was a busy day for the Fed. Several central bank officials gave speeches throughout the day that were then followed by the release of the latest FOMC meeting minutes in the afternoon. Some of the speeches appeared to provide differing opinions on the economy and how the central bank should proceed. Chicago Fed President Charles Evans alluded to the Fed’s previous plans for another three rate hikes in 2019. Atlanta Fed President Raphael Bostic provided his take on the central bank’s plans going forward,... Continue Reading

Uh Oh

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Recent revelations from Apple showed that sales of its iPhone products were way slower in China than many had anticipated. The poor sales data along with reduced guidance from the company sent its stock down by nearly 10% on Thursday as the Dow Jones Industrial Average shed over 600 points. Bad news from Apple was not the only issue weighing down the markets, either. A recent string of manufacturing data has clearly shown a slowdown in activity. After the Apple announcement on Thursday, the latest... Continue Reading

2019 to Pick up Where 2018 Left-off

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On the first trading day of the New Year, stocks are set to once again tumble at the open. Premarket trading points to around a 400-point decline for the Dow Jones Industrial Average right out of the gate while the tech-heavy Nasdaq is set to drop over 140 points. An ugly start to the new trading year to say the least. The selling is being fueled by many of the same factors that has fueled selling in recent weeks: The potential for a global economic... Continue Reading

The Breakout Has Begun

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The stock market has seen a major volatility expansion in recent weeks as declines have mounted. The equity markets are currently grappling with numerous issues that could not only set the stage for the next bear market but could also send stocks decidedly lower in a short period of time. Some of the major catalysts for recent stock selling include the ongoing trade war with China, rising interest rates, geopolitical risks and a partial government shutdown. Investors may now be wondering, however, if they must... Continue Reading

Markets Don’t Agree with the Fed

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The Fed’s decision to hike rates again on Wednesday was met with displeasure from equity investors. Stocks saw sharp declines even as the Fed lowered its forecast for next year from three rate hikes to two. That displeasure was on full display on Thursday, as stocks once again got absolutely rocked. The tech-heavy Nasdaq was down 3% at the lows, putting it down over 20% from its August peak. Although the index recovered a bit, it still ended the session down just under 20% from... Continue Reading

What if Stocks Declined by 50% or More?

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Recent stock market volatility and declines could be a taste of things to come. The market has been moving higher for a decade now on the back of ultra-low rates and easy money. That era is coming to an end, however, and stocks could be in for quite the shock as monetary policy tightens. The ultra-low rate policies of central banks have allowed corporations to invest, expand and hire. As the cost of capital increases, however, these wheels are likely to grind to a halt.... Continue Reading