Top Stories This Week: Powell Gets Fed Nomination, Using Gold in a Market Correction

TL;DR

Gold prices have experienced a drop due to a stronger US dollar, better treasury yields, and speculation about Jerome Powell's impact on interest rates. Market expert Nick Barachev recommends moving funds from the stock market to gold to prepare for a potential market correction. In the cannabis industry, 2021 has been described as a disappointing year, but there is hope for significant growth in 2022 with expected federal reforms and increased mergers and acquisitions activity.

Transcript

welcome back to our weekly update i'm charlotte macleod with the investing news network and i'm here to give you a quick look at our top stories for the week we're back after a break last week with quite a bit to cover in the gold space after running up past the 1860 per ounce mark midway through november the yellow metal has taken a tumble at the ... Read More

Key Insights

• ☠️ Gold prices have experienced a decline due to a stronger US dollar, better treasury yields, and speculation about the Federal Reserve's interest rate policies.
• 🏅 Market expert Nick Barachev advises investors to consider moving funds from the stock market to gold in anticipation of a potential major market correction.
• ❤️‍🩹 Twitter followers expect gold prices to range between 1800 and 1900 by the end of 2021.
• 👋 The cannabis market in 2021 has been disappointing, but there is optimism for significant growth in 2022 with anticipated federal reforms and increased mergers and acquisitions activity involving alcohol, tobacco, and consumer packaged goods companies.
• 🧑‍🏭 Investor sentiment regarding gold's future performance remains uncertain due to factors such as economic indicators, geopolitical tensions, and central bank policies.
• ☠️ The role of Jerome Powell's potential interest rate decisions adds an element of uncertainty to gold prices and investment strategies.
• 🌸 The importance of proactive decision-making in managing investments is highlighted, with Nick Barachev emphasizing the need for early action to avoid significant losses during market corrections.

Questions & Answers

Q: What factors have contributed to the drop in gold prices?

The decline in gold prices can be attributed to a stronger US dollar and better treasury yields. Additionally, speculation about Jerome Powell's impact on interest rates has influenced market sentiment.

Q: Why does Nick Barachev recommend transferring funds from the stock market to gold?

Nick Barachev believes that a major market correction is looming, and investors tend to be slow to react and exit the market once a crash occurs. By transferring funds to gold, investors can preserve their wealth and potentially benefit from gold's appreciation during market downturns.

Q: What range of prices do Twitter followers expect for gold by the end of 2021?

At the time of the recording, most Twitter respondents voted for the 1800 to 1900 price range for gold by the end of 2021.

Q: What is the outlook for the cannabis market in 2022?

Despite disappointment in 2021, there is optimism for the cannabis market in 2022. Industry expert Dan Ahrens believes that US federal reforms will happen sooner rather than later, leading to increased mergers and acquisitions activity, particularly involving alcohol, tobacco, and other consumer packaged goods companies.

Summary & Key Takeaways

• Gold prices have fallen from their recent high of $1860 per ounce to sit just below $1790, with factors such as a stronger US dollar and better treasury yields contributing to the decrease.

• Market expert Nick Barachev suggests that investors should consider transferring funds from the stock market to gold due to the potential for a major market correction.

• In the cannabis industry, 2021 has been characterized by slow progress on federal legislation updates in the US, leading to disappointment. However, there is optimism for significant growth in 2022, with mergers and acquisitions activity expected to increase.