David Brady: Gold to Bottom Imminently as Yields Peak
Tom welcomes back David Brady, CEO, and Co-Founder of Global Pro Traders. David explains his trading methodology and why multiple approaches can provide a high degree of certainty with market trends.
The IMF continues to encourage countries to spend, and the Biden administration has passed more stimulus. Powell plans to issue more debt, and Treasury Secretary Yellen wants MMT. Increasingly, these policies will result in global supply shocks. Massive increases in money supply will bring higher money velocity and thus inflation. Stagflation appears to be coming, and investors should consider what happened to gold, silver, and oil between 1970 and 1980. Now, imagine what a hyper-stagflationary environment and where that will take gold and silver.
The recent bearish sentiment for gold is a good contrarian indicator, and David expects to see a continuation of the bull market shortly.
The Fed plans to cap yields in the bond market, establishing asymmetric risk for yields to the downside. Real yields correlate inversely with gold and silver, and the Fed can’t let yields rise further.
David discusses the core CPI measures and why they are a joke since they don’t include everyday things like food and energy. The commodity sector is breaking out, and this makes the government inflation numbers look entirely laughable. He argues it doesn’t matter what the dollar does relative to other currencies when all currencies are basically toilet paper.
The Reddit movement has brought silver out of the shadows and into the public consciousness. This understanding is a huge positive for silver and taking physical off the market is the correct approach.
Time Stamp References:
0:00 – Intro
0:35 – David’s Market Analysis
6:48 – Bonds and Rates
9:03 – Fed and Yield Control
10:22 – Measuring Inflation
14:26 – Gold & Silver Bottom?
15:56 – Yield Peak & Precious Metals
17:18 – Dollar Predictions & Gold
20:14 – Near-Term Gold Targets
20:56 – Thoughts on Silver Squeeze
23:57 – Oil and Energy – Texas
25:34 – Sentiment & Markets
28:32 – Wrap Up & Risk/Reward
Talking Points From This Episode
- Davids System for Tracking Markets
- Bonds, Rates, and Yield Control.
- Measuring inflation and targets for metals.
- Silver squeeze and market sentiment.
David’s Article: https://tinyurl.com/2y3x7ahz
David Brady has managed money for banks and businesses for 25 years. Mr. Brady is a CFA charter holder and holds a bachelor’s degree in Business Studies and Financial Markets from Dublin City University. He started as a foreign currency trader in USD/DEM and managed multi-billion dollar bond and foreign exchange portfolios for multinationals such as eBay and Salesforce.
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 won foreign currency spot, forward, and bond trading competitions at 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 Ontario, Canada, since 2015, with his wife and four kids.