David Brady: Commodities Set to Move Much Higher
David discusses his background and approach to managing money for over twenty-five years. He loves the dynamic nature of the market as there is always something happening. His approach to the market is a holistic one. He says, “most analysts are religious about their approach.” Instead, he uses what works and looks for a confluence of signals that show the market trend clearly. Focusing on the data allows one to avoid background noise and any biases.
David believes gold will bottom and rally once the Fed reverses policies. Until now all we have seen is a verbal reversal, the Fed has not yet switched gears.
Critical support levels for gold are from 1280 to 1241, if we can get through those we can retest. We need a decent pullback before the next move higher. We are still very much in bottom territory, and long-term gold can only go much much higher.
Central banks respond to every recession by printing money which results in rampant inflation. Therefore a downturn in commodities is unlikely. The economy itself is undoubtedly already in a recession as Federal tax receipts have been declining for some time. Japan continues to print money, and China has begun opening its spigots. Under Trump, this may come in the form of infrastructure spending. All the commodities will take off when the Fed reverses its policy.
The main thing to focus on is the narrative and apply higher level thinking to it. Try to read between the lines and keep an eye on the Fed’s policies. They are trying to build ammo for the crisis they know is coming.
Time Stamp References
0:45 – David’s background and interests.
2:20 – Gold and silver sector outlook.
3:00 – Despite comments the Fed has yet to reverse their policies.
6:30 – COT Analysis for gold.
8:30 – Why gold will go multiples higher.
9:30 – Tax receipts are down recession is highly likely.
12:30 – Effects of inflation and commodities.
14:00 – Avoiding bias in investments.
16:00 – What attracted him to gold.
18:30 – Watch the Fed, they will change course.
22:00 – Fed will try and raise rates and it will backfire.
23:00 – Risk of loss of confidence in US assets.
Talking Points From This Week’s Episode
• The Fed knows the economy is deteriorating.
• Oil and most commodities will soar.
• If the dollar falls, there could be a risk of a loss of confidence in US assets.
• Monetary insanity on steroids is coming.
David Brady is CEO and Co-Founder of Global Pro Traders and has managed money for banks and businesses for 25 years. Mr. Brady is a CFA charter holder and holds a Bachelors Degree in Business Studies and Financial Markets from Dublin City University. He started out as a foreign currency trader in USD/DEM and moved on to manage multi-billion dollar bond portfolios for multinationals such as eBay and Salesforce. As the Vice President of Treasury and Investor Relations, he was also responsible for managing interest rate, equity, and commodity risk exposure.
He has always been interested in financial markets, winning investment competitions at the age of 15; scoring the highest grade for his graduate thesis “Is the ERM (Exchange Rate Mechanism) Fatally Flawed?” in 1993; and winning foreign currency spot, forward, and bond trading competitions at the age of 23. Suffice to say that financial markets have been his passion for much of his life.
David is a native of Dublin, Ireland. He moved to the United States in 1998 and now lives in Toronto, Canada, since 2015, with his wife and three kids.