“There’s a lot of shorts on the market, but the volume is not there. There is not enough metals to go around for the actual appetite of the people buying it.” – 04:04
Remy Blaire welcomes David Stryzewski, CEO of Sound Planning Group, to discuss the current state of the financial markets live from Money20/20 U.S. in Las Vegas. The segment opens with a focus on Wall Street, which has recently hit record highs, buoyed by positive earnings figures and optimism surrounding potential rate cuts from the Federal Reserve. Despite some recent volatility, the bulls appear to have regained control, prompting a discussion about the implications for various asset classes, including precious metals and cryptocurrencies.
David provides insights into the stability of the equity markets, noting that major companies have reported decent earnings and that the U.S. dollar remains relatively stable. He mentions President Trump’s upcoming visit to China and the recent peace developments in the Middle East as contributing factors to the positive market sentiment. However, he also highlights the uncertainty created by the government shutdown, which has resulted in a lack of updated economic data, including crucial metrics like CPI, GDP, and job numbers. David points out that Amazon is undergoing significant job cuts, which he believes reflects broader trends in the tech industry where companies are reassessing their workforce in light of changing market conditions.
The conversation then shifts to precious metals, particularly gold, which recently soared to record highs before pulling back. David describes this pullback as an opportunity, emphasizing that global demand for precious metals remains strong. He explains that while gold and silver prices may fluctuate, the underlying demand continues to grow, especially as the world moves toward a potential gold-backed standard. He also discusses the critical role of silver in the semiconductor industry, linking it to the performance of tech companies like Nvidia.
As the discussion progresses, Remy and David delve into the cryptocurrency market, analyzing the recent price action of Bitcoin and Ethereum following a liquidation event earlier in the month. David describes the volatility in the crypto market, attributing it to institutional interest and the use of leverage by investors. He encourages listeners to remain optimistic about the future of blockchain technology, likening the current moment to a revolutionary shift akin to the rise of ChatGPT.