David Brady: We are Setting up for Another Bullish Move for Gold
David looks back at the last rally for gold and discusses how the $300 move became overbought from a technical perspective. That rally has only corrected by a third, which is a good sign of a bull market. He expects that there will be a lower low soon, and then we should be off to higher highs.
He uses a more holistic approach to market analysis and follows numerous signals looking for extremes like sentiment, which together reveal a market direction. David examines what led to significant turning points and then looks for similar patterns today. He says, “Being a contrarian can be quite profitable. When people get exuberant, markets tend to overcorrect.”
For an introduction to precious metals, he recommends “Gold and Silver” by Mike Maloney. He likes anything written by Michael Pento, Peter Schiff, and Jim Rickards. Other good reads are “The Great Depression” by Benjamin Roth and the “The Dollar Crisis” by Richard Duncan. Duncan is a globalist who points out all of the problems caused by massive debts and trade wars.
Almost everything is overvalued today except earnings, which have been flat since 2014. The economy is undoubtedly sliding into an official recession. This time around, they are implementing QE while the market is at all-time highs, and any sign of stress could overwhelm current Fed liquidity.
Like any Ponzi scheme, central banks need ever-increasing cash flows into the system. The first casualty may be the dollar, and when that happens, all fiat currencies will be in trouble. Rampant inflation will occur, and the QE “solution” then becomes the poison, which is soon followed by collapse.
He hopes that people take a broader view of the moves in the market because, in the long-term, it will benefit them. The amount of QE being issued by the Fed is too little too late, and a crash in stocks would provide the Fed with an excuse to print more.
Time Stamp References
0:40 – Why he is bullish on gold.
3:20 – His approach and favorite technicals.
7:00 – Fed, liquidity, and valuations.
10:20 – Favorite authors and books.
13:30 – How a collapse may unfold.
18:15 – Calm before the storm of 2020.
Talking Points From This Week’s Episode
• Indications that we are in a precious metal bull market.
• Over valuations in most of today’s markets.
• Favorite authors and recommend reading.
• Risks from global debt and recession.
David Brady has managed money for banks and businesses for 25 years. Mr. Brady is a CFA charter holder and holds a Bachelors Degree in Business Studies and Financial Markets from Dublin City University. He started as a foreign currency trader in USD/DEM and moved on to manage multi-billion dollar bond portfolios for multinationals such as eBay and Salesforce. As the Vice President of Treasury and Investor Relations, he was also responsible for managing interest rate, equity, and commodity risk exposure.
David is a native of Dublin, Ireland. He moved to the United States in 1998 and now lives in Toronto, Canada, since 2015, with his wife and three kids.