Gareth Soloway: Real Estate Market is Teetering on the Edge
Tom welcomes back Gareth Soloway, President, CEO & Chief Market Strategist for InTheMoneyStocks. Gareth discusses the recent strength of the US dollar, which has seen 11 consecutive weeks of gains. Soloway notes that while the media may have different narratives, charts tend to repeat patterns due to human emotion. He recommends dollar cost averaging into positions and slowly exiting on the upside to ensure profits. The strength of the dollar can be attributed to the US's relatively strong economic data, while other countries are struggling. This is causing money to rotate into the safety of the dollar and bond markets. The strength of the dollar is also affecting the metals market. Currently, the US dollar is exhibiting significant strength. This can be largely attributed to the Federal Reserve's monetary policy and the country's high levels of debt. However, this strength is not sustainable and the dollar is expected to eventually weaken. Therefore, it is important to diversify away from the dollar, with gold being a recommended option. Gold has been performing well and shows signs of accumulation, especially with central banks actively buying it. While silver has also been performing well, its industrial use may cause it to underperform compared to gold. In terms of the stock market, Soloway notes that the NASDAQ is showing signs of a potential breakdown. Hedge funds are starting to exit long positions and short the market, indicating a potential shift in sentiment. The recent interest rate hikes are already having an impact, with banks failing and the real estate market starting to slow down. This could potentially lead to a larger correction in the real estate market, and there may be other underlying issues that are not yet apparent. Soloway also discusses his concerns about the US economy. He believes that the Federal Reserve's aggressive hiking structure will eventually cause damage to the economy, potentially in areas such as commercial real estate or corporate debt. While the US has been able to delay a recession for a longer period than expected, there are signs that the economy could be heading towards a contraction. Soloway suggests looking at commodity-heavy countries like Brazil and China. He remains bullish on uranium in the long term. Time Stamp References0:00 - Introduction0:40 - Dollar Strength & Chart3:32 - Trailing Stops & Exits5:18 - U.S. & Narratives6:23 - Gold the Anti-Dollar10:00 - Silver & Gold Charts13:12 - Nasdaq Rolling Over?16:05 - Smart Money & Funds17:16 - Fed, T-Bills & Rates18:45 - Commercial Debt Risk20:50 - Recession & Consumer Debt22:00 - Fed Easing & Inflation24:30 - Politics & Incentives24:54 - Global Markets & Liquidity28:05 - Crude & Uranium30:52 - Investor Psychology32:54 - Concluding Thoughts Guest Links:Twitter: https://twitter.com/GarethSolowayTwitter: https://twitter.com/ItmsWebsite: https://inthemoneystocks.com/Website: https://verifiedinvesting.comBlog: https://inthemoneystocks.com/author/gareth/LinkedIn: https://www.linkedin.com/in/gareth-soloway-60827953/ 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.