Retirement Lifestyle Advocates
Your Portfolio Watch Weekly Update November 6, 2022
The push toward central bank-issued digital currencies continues as inflation continues to demolish purchasing power around the world.
Financial assets like stocks and real estate don’t react well to deflation. Ultimately, I believe stocks will have to go much lower.
Despite the recent rally in stocks, when analyzing longer-term price charts, it is my view that stocks remain in a downtrend at this point in time.
With the recent bankruptcy of the cryptocurrency exchange FTX, there has been a lot of renewed focus on cryptocurrencies.
The Federal Reserve will ultimately ‘pivot’ and begin to pursue easy money policies once again via lower interest rates and quantitative easing.
Over the course of this year, the disparity in pricing between the paper or “spot” price of precious metals has widened. Put another way, the “premium over spot” at which physical precious metals sell has increased in calendar year 2022.
The disparity in price between physical metals and the spot price of metals has always existed but has been growing of late; just one phenomenon that exists due to the artificial economy created by fed policies over the past decade-plus.
Accumulating margin debt can drive stock prices higher and declining levels of margin debt can forecast a stock price decline.
When inflation first became a topic of conversation, I stated my view that unless we saw real positive, net interest rates, inflation would not be controlled.
The Federal Reserve will reverse course and begin to pursue loose money policies again reducing interest rates and once again engage in quantitative easing.