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

Date:


The stock market rally that started 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 of InTheMoneyStocks.com, said volatility is not over and stocks are likely to see new lows.

“This is a fear that the Fed will not pull out,” Soloway told David Lin, Anchor for Kitco News. “We got the minutes of the Federal Reserve meeting last week, which was the end of the move. Until those minutes, we hit the 200-day moving average, which was the technical resistance level. And once we heard from the Fed, it seemed they weren’t as lenient as the market wanted them to be.”

Soloway said it’s possible stocks won’t recover to their 2021 highs for many years to come.

“The stock market has reached its peaks in 2021. We will not hit those highs in the next five to 10 years,” he said.

Deteriorating macroeconomic conditions are to blame, Soloway said.

“You get this genie that’s out of the bottle called inflation, it won’t go back to 2% or less for a long, long time. That will mean the Federal Reserve won’t be able to push us out of the recessions in the future, especially this next one,” he said.

An economy “entangled in stagflation” will last for years, Soloway noted, weighing on stock prices and profits.

Investors and traders will have to pick stocks in the future, he said.

“I think you want to stay away from the indices themselves and you have to go and see and see what the new technology is, for example what is a stock with a good dividend,” he said.

In addition, a strong US dollar also contributed to a decline in equity markets, Soloway said, as a stronger dollar hurts export-oriented companies.

The DXY index rose 0.73% on Monday.

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

Watch the video above for Soloway’s take on Bitcoin, Ethereum, AMC and Bed Bath & Beyond stocks.

Follow David Lin on Twitter: @davidlin_TV (

Follow Kitco News on Twitter: @KitcoNewsNOW (



Disclaimer: The views 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; nor Kitco Metals Inc. neither the author can guarantee such accuracy. This article is for informational purposes only. It is not a request to exchange commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article assumes no liability for loss and/or damage arising from the use of this publication.


The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

MLB Wild Card: Phillies watch Brewers lose, then beat Nationals to increase playoff lead

WASHINGTON -- The Phillies had to win two games...

Antonio Inoki, famed combat sports trailblazer, dies at 79

Antonio Inoki, a martial arts pioneer, influential politician and...

Japan spent record of nearly $20.0 bln on intervention to support the yen

Intervention absorbs almost 15% of readily available fundsJapan can...

Five Stockton killings connected, person of interest sought

A person of interest is wanted in connection with...