Why Did Stocks Just Fall 5%? | New Harbor Financial
Apr 23, 2024
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Financial advisors John Llodra and Mike Pr from New Harbor Financial discuss the recent stock market sell-off and bond price fluctuations. They analyze whether it's a temporary pullback or a significant reversal. Topics include market froth removal, inflation concerns, gold prices, and the need for portfolio hedging amidst uncertain market conditions.
Market correction possibility due to high stock valuations and mixed indicators.
Gold ownership advised for potential price growth amid market instability.
Deep dives
Federal Government Deficit and Private Sector Implications
When the federal government runs on a deficit, it reflects as a surplus in the private sector, boosting spending and profit margins for companies. However, this has led to inflated asset prices like in the stock market, indicating a potential market correction due to unsustainable deficits and looming inflation concerns.
Market Dynamics and Recent Weakness Indicators
Recent market volatility, exemplified by the stock market drop and bond price falls, has raised questions on whether this is a temporary correction or a more significant market reversal. Insights from financial advisors suggest a cautious approach given high stock valuations and the need for diversified indicators like market breadth for a comprehensive risk assessment.
Implications of Fiscal and Monetary Policy on Wealth Disparity
Former CEO insights shed light on the Fed's mixed track record and influences of political and capital pressures on policy decisions. Concerns arise over wealth disparity fueled by monetary policies, posing risks of a severe market correction and social tensions, emphasizing the urgency for sound fiscal policies and investment diversification strategies for wealth protection.
Market Analysis and Potential Banking Crisis Concerns
There are concerns about potential market phases shifting from disinflation to inflation, with implications for investments. The possibility of a banking crisis, with President Honig estimating a moderate likelihood, adds to the financial stability concerns. Factors like interest rates, bond market dynamics, and potential over-supply of bonds could contribute to market instability and even a banking crisis.
Gold Market Dynamics and Investment Recommendations
The podcast delves into the dynamics of the gold market, highlighting central bank purchases and contrasting retail demand in China with the West. Chinese demand for gold amid economic challenges and the ease of buying physical bullion in China underpin a potential price growth catalyst. The discussion emphasizes the importance of owning gold alongside silver and gold mining stocks, with technical charts indicating potential future growth opportunities in these assets.
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Stocks have sold off sharply since hitting all time highs just 3 weeks ago.
Bond prices are falling, too.
What's going on here?
Is this just a needed pullback to remove excessive froth before the market resumes rising to all-time highs?
Or is this a more significant reversal?
For a professional's perspective, we turn to John Llodra and Mike Preston, the lead partners at advisory firm New Harbor Financial.
Many of you already know that New Harbor is one of the financial advisory firms endorsed by Thoughtful Money.
To schedule a free consultation with them, fill out the short form at https://www.thoughtfulmoney.com
#inflation #goldprice #marketcorrection