David Brady: Protect Yourself During the Controlled Demolition of the Economy
Tom welcomes back David Brady, CEO, and Co-Founder of Global Pro Traders to discuss the current financial picture. He believes this is the last pull back before a big take off in gold, silver, platinum, and miners. Hedge funds are massively short bonds in particular the 10-year, and the banks are on the opposite side of that trade. History shows that banks are almost always the winners. He provides a few targets he anticipates in the next run.
David believes we will get a deflationary event at some point in the near future. By the end of the year, he feels a depressionary scenario is likely, with soaring unemployment, bankruptcies, credit card debt, and auto reposessions. Real estate is stagnating, and the banking crisis is worsening. The Fed will cut rates and print, but that might not save the markets this time. We could be looking at a controlled demolition of the economy, with most sectors going down. Prices for necessities will skyrocket, and there won’t be many places to put your money.
David believes a mind-shift is occurring in the public with regards to gold and confidence in currencies. We’re seeing talk about fertilizers being bad for the environment and the purchasing of farms in the Netherlands. If the politicians don’t agree on the debt ceiling agreement, all hell could break loose. The Fed would have to restart the printers as the debt rating falls. We can’t just keep borrowing while devaluing the currency, which means some sort of financial reset is inevitable. You want to be in assets proven to hold value through time.
Time Stamp References:
0:00 – Introduction
0:42 – Unease & Crises
10:38 – Flash Crash Potential?
19:00 – Interest in Gold?
21:56 – Inflationary Event
26:12 – COT Report Trends
29:10 – Debt Ceiling Theatrics
40:03 – Europe & Dollar Dynamics
43:14 – Dollar & Gold Movement
47:15 – Reality & Growth Goals
54:30 – Concluding Thoughts
Talking Points From This Episode
- Hedge funds are short bonds while banks are long; who will be right.
- A great recession is a risk in which prices for necessities will skyrocket.
- We are facing a financial reset, and why the best bet is to invest in assets proven to hold value.
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.