Tom welcomes back Gareth Soloway, President, CEO & Chief Market Strategist for Verfied Investing. The conversation centers on the significant influence of the top six companies in the S&P and NASDAQ, which make up approximately 33% of these indexes, raising apprehensions for passive or specific investors. Soloway underscores potential risks associated with this overallocation, such as flash crashes or market declines, emphasizing the role of algorithms in exacerbating risk due to their massive investments and swift responses to market shifts.

Soloway also shares his concerns about various economic indicators signaling a weaker economy than suggested by broad indices. He mentions the transportation sector, Airbnb rentals, and commodities like copper and oil as examples of potential weaknesses that could impact consumer spending and tech giants like Amazon, Microsoft, Nvidia, and Apple. Copper and oil, often viewed as economic health indicators, have shown signs of potential downturns.

Soloway anticipates a return of inflation to 2% once the economy slows down, but warns of a quick rebound when the Federal Reserve starts cutting interest rates aggressively during an economic downturn. He fears this could lead to difficulties for the Fed in rescuing the economy as they have done in the past.

Central banks’ responses to inflation are also discussed, with Soloway suggesting they can impact inflation through interest rates and quantitative tightening measures. The Federal Reserve is challenged to balance its dual mandate of price stability and maximum employment.

Gareth discusses potential consequences of high inflation, such as affecting consumer confidence and leading investors to shift from stocks to bonds. He also touches on rate effects on wealthy individuals and the growing US debt, which could impact future interest rate cuts and the possibility of a financial reset. Gareth believes that significant economic collapse could occur within the next five to ten years, possibly resulting in Central Bank Digital Currencies (CBDCs) implementation as a solution or band-aid fix for an already fragile economic situation. The conversation also covers challenges the Federal Reserve faces during elections and potential impacts of other central banks’ rate cuts on the US economy. Lastly, Gareth raises concerns about financial institution risks due to asset-liability mismatches and potential massive losses, especially in commercial real estate.

Time Stamp References:
0:00 – Introduction
0:32 – Equity Concentration
1:28 – Flash Crash Risks?
2:27 – Trading Algos & Exits
3:36 – Economy & Weakness
4:14 – Transport ETF Chart
5:09 – Russell 2000 Index
5:45 – AirBnB Chart
7:32 – Copper Chart
9:18 – Crude Oil Chart
10:23 – Inflation Thoughts
12:28 – Rates, Demand, & Credit
14:58 – The Debt End Game
17:52 – The CBDC “Fix”?
19:50 – Fed & 2024 Election Cycle
21:44 – Foreign C.B. Rate Cuts
22:28 – Market Risks & Banks
26:33 – Gold/Silver Outlook
30:18 – Palladium Chart
32:33 – Wrap Up

Guest Links:
Twitter: https://twitter.com/GarethSoloway
Website: https://inthemoneystocks.com/
Website: https://verifiedinvestingcrypto.com
Website: https://verifiedinvestingeducation.com
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.

After building his wealth through trading in 2004, he left the financial industry to trade his own money and study charts and technical signals. This was when he met Nicholas Santiago. The two top traders spent days trading stocks/futures together, and nights putting their collective brainpower into the pure genius that would become the PPT Methodology.

Verified Investing was launched in 2007 once the PPT Methodology was perfected. Gareth’s goal was to help average investors beat the best hedge funds and traders on Wall Street by teaching them the methodology and giving them his trades as he took them LIVE!

Since 2007, Chief Market Strategist Gareth Soloway has maintained an over 80% success rate on swing trade alerts (verified 300+ trades per year) given to members in Verified Investing Alerts (formally named the Research Center) and a confirmed 94% success rate on day trades in the Live Day Trading Chat Room. He has given lectures at colleges around the United States, been asked to train hedge fund traders in other countries, and taught thousands of investors how to invest and trade profitably, achieving their dreams of financial independence. He lives life to the fullest and puts his heart and soul into teaching his members who come willing to learn the PPT Methodology.