Show Highlights
Gerald Celente, founder of the Trends Research Institute, returns to the show with new commentary on the geopolitical arena and financial markets.
Our guest is concerned that the US US could be drawn into a military conflict in the Middle East or with NK with potentially dire consequences.
US equities indexes have benefited from artificial and unsustainable stock buybacks.
Gerald Celente echoes the sentiments of many recent guests, expressing his concerns that corporate earnings may not be capable of maintaining current lofty levels.
As wage stagnation and increasing credit card / auto loan defaults persist, policymakers could face an economic quagmire deeper than that of the Great Recession.
To protect investors from increasing financial market exposure, Gerald Celente proposes the safe haven asset with the greatest appeal remains gold.
Gold could soar after breaking through strong resistance at $1,450. Beyond that point, the sky could be the limit as the yellow metal eclipses the bull market peak, above $2,000 per ounce.
WolfStreet.com founder, Wolf Richter makes his show debut with cautionary comments on the US domestic economy.
The national unemployment rate remains at 17 lows 4.1% and employers added 313,000 new jobs to the workforce last month.
Wolf Richter counters with increasing credit card / auto-loan default rates, elevated consumer debt levels and lower auto sales.
Policymakers and consumers alike have learned little from the debt lessons of the 2008 Great Recession.
The current Echo Bubble has resulted in record debt levels. Consequently, the higher interest rate theme will persist in 2018.
Our guest expects 4 FOMC rate increases this year - the 100 basis point increase could result in 6% mortgage rates by year end, which has yet to be priced into the markets.
The US housing sector is particularly vulnerable to interest rates, due in part to the subsequent increases in mortgage costs and monthly payments.
The Titantic-like housing sector responds slowly; our guest expects real estate price declines by the end of 2018 or early 2019.
The host suggests interested parties monitor US Housing Starts, which recently recorded exceptional figures, a 10% boost month over month, annualized, his key leading economic indicator. The figure could offer guidance.
To shield investment returns, the host suggests identifying low correlated assets to lower the overall beta risk of the traditional stock / bond investment portfolio.
Safe haven assets such as the PMs, Bitcoin and currencies offer liquidity and wealth preservation.
A hypothetical portfolio includes the following assets to help balance stocks / bonds(included for illustration purposes, not as investment advice).
