Stocks To "Get Hammered" Soon | David Brady
In Q1, investors could do no wrong.
Making money was easy, as almost every asset class rose to new highs as markets anticipated coming interest rate cuts from the Fed.
But here at the start of Q2, things are starting to feel a lot less safe.
Suddenly stock prices are plateauing, and services inflation plus a swiftly rising oil price are quickly dashing hopes of rate cuts anytime soon.
Will the markets offer a bumpier ride from here?
To find out, we have the good fortune to talk today with David Brady, money manager, former FX trader, and author of one of the most popular investing publications on Substack, the FIPEST Report.
David has a pretty grim outlook for the stock market. He expects stocks to fall 20-30% soon, recover before the election as the Federal Reserve returns to QE, and then, once the election is over, "drop precipitously".
Here are my top takeaways from my discussion with David:
David's challenges the optimism expressed by Federal Reserve Chair Jerome Powell towards the economy, citing signs such as increasing bankruptcies, auto loan defaults, and falling housing prices as indicators of a stressed and weakening system.
He forecasts a significant stock market correction of 20-30% in the S&P 500 soon, possibly reaching 3,500, followed by a rescue by the monetary & fiscal authorities to prop things up until the election….after which, he expects stocks to fall “precipitously” — as much as 80%(!)
He predicts investor capital to increasingly flow into gold and silver over this period seeking safe haven amidst mounting market volatility and economic uncertainty.
David emphasizes the importance of owning physical gold and silver as a hedge against potential financial crises. He acknowledges the potential gains that may likely be experienced in mining stocks, but raises concerns about an asset class that realizes its gains in fiat currency, which is susceptible to inflation (which holding your precious metals in ounces protects you against)
He recommends learning how to grow your own food, underscoring the benefits of gardening outside and eating organic produce — including its healthiness, cost-effectiveness, and potential resilience in the face of future uncertainties.
Watch the full interview here:
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