Gareth Soloway: Gold Will Outperform Bitcoin and Stocks this Year
Tom welcomes back Gareth Soloway, President, CEO & Chief Market Strategist for InTheMoneyStocks.
The markets appear to be experiencing deleveraging as large players exit while the smaller investors buy the dip. Bitcoin corrected early and we usually see a sell-off with crypto when equities correct. We’re near all-time highs for leveraged borrowing by investors.
Excess leverage creates bigger sell-offs and the margin calls can wipe out investors.
He discusses the trends for the S&P 500 and how we have moved towards the bottom of the channel several times. The trend appears to be flattening which is indicative of weakness.
Bitcoin is fighting around the 40k level and we have two converging trend lines. We could bounce but ultimately we’re looking at continued deleveraging in the broader markets. Watch the Fed should they blink we might be off to the races again.
Markets have been deleveraging and some stocks are starting to look attractive. Many technology names have been hit hard but the big names continue to support the indexes. Weakness is revealing itself in the underbelly of the markets.
Gareth believes 2022 will be a taper until around March followed by a rate hike. The market will probably throw a tantrum because it’s accustomed to all the easy money. A drop of twenty percent in equity markets seems likely and will force the Fed to react cautiously. Eventually, the Fed will lose complete control and the flood of money will get out of control.
Gareth is attracted to some stocks outside of the United States that are more reasonably priced. He expects money to start flowing out and some of it could easily head to China or Brazil.
Gold tends to lag inflation which also happened in the 70s. This is likely to happen once again. The more the Fed prints the larger the move in gold.
Lastly, he discusses the chart for silver and provides some targets for the metals. He’s looking for a good entry point around $19 for silver this year before the big move to $50.
Time Stamp References:
0:00 – Introduction
0:41 – Market Relationships
1:55 – Leverage & Sell-Offs
4:00 – SPDR S&P Chart
5:42 – Bitcoin 40k Level
8:08 – Taper Concerns
11:26 – Rates & Fed Control
13:47 – Current Plays
16:42 – January Effect
19:06 – Inflation and Gold
21:16 – 2018-2019 Gold
22:40 – Fed Constraints
24:08 – Silver Thoughts
25:31 – Newmont Chart
26:21 – Concluding Thoughts
27:23 – Metal Targets 2022
Chief Market Strategist Gareth Soloway has been an avid swing and day trader since his days at Binghamton University, where he studied Economics. After college, Gareth quickly excelled as a financial adviser, but his heart was always in swing and day trading. He had this long-standing belief that he could help investors make more money by advising them on shorter-term investments (holding a stock for days to weeks) than the buy and hold crowd who lost 50% of their money during every market collapse. “Why not profit during the bear markets just like the bull markets,” he said. So while helping others gain financial independence during the day, he spent his nights studying charts and price action, developing a unique market trading system that put his profits on a rocket ship. Some nights he would barely sleep when he found a new technique that was proven, once back-tested.
After building his wealth through trading in 2004, he left the financial industry to trade his own money and study charts and technical signals. This was when he met Nicholas Santiago. The two top traders spent days trading stocks/futures together and nights putting their collective brainpower into the pure genius that would become the PPT Methodology.
InTheMoneyStocks was launched in 2007 once the PPT Methodology was perfected. Gareth’s goal was to help average investors beat the best hedge funds and traders on Wall Street by teaching them the methodology and giving them his trades as he took them LIVE!
Since 2007, Chief Market Strategist Gareth Soloway has maintained an over 80% success rate on swing trade alerts (verified 300+ trades per year) given to members in Verified Investing Alerts (formally named the Research Center) and a confirmed 94% success rate on day trades in the Live Day Trading Chat Room. He has given lectures at colleges around the United States, been asked to train hedge fund traders in other countries, and taught thousands of investors how to invest and trade profitably, achieving their dreams of financial independence. He lives life to the fullest and puts his heart and soul into teaching his members who come willing to learn the PPT Methodology.