Gareth Soloway: Sky-High Unemployment Could Cause the Fed to Pivot
Tom welcomes back Gareth Soloway, President, CEO & Chief Market Strategist for InTheMoneyStocks.
Gareth discusses how institutions are often invested in the latest hot thing. They are now in oil, and we’re likely to see further downside in oil. Funds are continually looking for the next thing to rotate into, and now we’re back to tech stocks. Later in the cycle, we will get to a panic point. Sometimes being in cash is the best place.
The bottom will be in when we reach the acceptance step of the grief stages. When everyone is frustrated with markets, you will recognize the bottom.
We’re currently hovering around the 2017 high for Bitcoin, and we will probably see 25k in a rebound. There are many similarities between crypto and the dot com bubble. We need to see 80-85% decline, as there are far too many other coins.
When everyone is calling a bottom usually means we haven’t reached that point yet.
Gareth believes the Fed will change policy when unemployment rises significantly. The Fed will then be caught between inflation and unemployment, which will steadily worsen. We could quite possibly see a depression scenario by 2030.
Bond volatility is indicative of markets that are dealing with something serious. Keep in mind, when there is turmoil in markets, there is also opportunity.
Time Stamp References:
0:00 – Introduction
0:35 – Institutions & Oil
4:00 – Grief Stages
5:03 – Bitcoin
10:56 – Fighting the Fed
14:00 – Unemployment & Inflation
15:19 – Bonds & Volatility
17:23 – Fed Funds & Dollar
19:28 – Euro Weakness
20:40 – Turmoil & Opportunity
21:38 – The Dollar & Gold
23:18 – Trading
24:13 – Russian Ruble
25:20 – Wrap Up
2008 Video: https://youtu.be/xxdP5xWIMkc
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.