Stock market freefall will continue, won’t make new highs for 10 years – Gareth Soloway on Bitcoin, AMC, gold


The stock market rally that began in mid-June began to reverse in mid-August. On Monday, the S&P 500 fell 2.1% at market close.

Gareth Soloway, chief market strategist at InTheMoneyStocks.com, said the volatility is not over yet and in fact stocks are likely to see new lows.

“It’s a fear that the Fed won’t back down,” Soloway told Kitco News anchor David Lin. “We got the minutes last week from the Federal Reserve meeting, that was sort of the end of the move. Just in those minutes we touched the 200-day moving average, which was the level of technical resistance.And as soon as we heard from the Fed, it didn’t look like they were as dovish as the market wanted them to be.

Soloway said stocks may not return to their 2021 highs for many years.

“The stock market hit its highs in 2021. We won’t hit those highs for another five to ten years,” he said.

Deteriorating macroeconomic conditions are to blame, Soloway said.

“You’re going to have this genie coming out of the bottle called inflation, it’s not going to come back to 2% or less for a very, very long time. That means the Federal Reserve won’t be able to imprint future recessions on us, especially the next,” he said.

An economy “mired in stagflation” will last for years, Soloway noted, and weigh on stock prices and earnings.

Investors and traders will have to be stock pickers going forward, he said.

“I think you’re going to want to stay away from the indices themselves and you have to start looking and seeing what’s the new technology, what’s a stock that has a good dividend, for example,” he said. he declares.

Additionally, a strong U.S. dollar has also contributed to a decline in stock markets, Soloway said, as a stronger dollar hurts export-oriented businesses.

The DXY index rose 0.73% on Monday.

Soloway maintains his view that gold will be the best performing asset by the end of this year.

For Soloway’s views on Bitcoin, Ethereum, AMC, and Bed Bath & Beyond stocks, watch the video above.

Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV)

Follow Kitco News on Twitter: @KitcoNewsNOW (https://twitter.com/KitcoNewsNOW)



Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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