Home Featured 2019 A Possible Look Ahead…

2019 A Possible Look Ahead…

2019 A Possible Look Ahead…
euro coins concept close up

Before I address my so-called predictions for what I believe is in store in 2019 for the economy and stock markets, let’s take a quick review of what transpired in 2018.

GDP was up along with the economy. But was it really? With infused cash and borrowing, the economy continued its torrid pace. Borrowing from the Fed will most likely have to continue for the economy to continue roaring forwards into 2019.

With the economy ‘strong’, interest rates rose but what is the Fed’s plan?

According to John S Tobey of Forbes:

The push for more inflation began many years back. First, the Fed warned deflation was raising its ugly head and could create another recession. Next, when the deflation fear was no longer operative, they said economic growth was slow because inflation was too low. Now, with growth up and inflation around the 2% target, that argument is moot, so the Fed has a new fear: the next economic downturn can only be countered by higher interest rates from which the Fed can lower more dramatically. Getting to higher rates, the economists argue, means higher inflation is needed. The Fed believes we should welcome their efforts to boost inflation so that the market-determined interest rate will rise higher, thereby allowing the Fed to step in and cut the market rate a lot (versus a little). That idea is worse than silly – it is economists attempting to construct their latest, idealistic vision of how the U.S. economy and financial markets should operate.

The one thing we do know from history is that the Fed will fail, and we will be the worse off for it. Economic history is littered with economist-instigated damage. Much of it was well intentioned, but flawed – usually by looking backwards, fearing the last problem and relying too much on ivory tower thinking.

So, will the Fed back down?

Probably not. The Fed self-touts its lengthy low interest rate policy as a success. Without opposition to that view, the Fed has the support and independence for carrying out this higher inflation strategy.

As investors, we may well be reentering the bad-ol’ days of the 1970s of big deficits, big debt, higher-than-desired inflation and… yes, higher than desired interest rates. The lesson from that time underscores the significant risk of having the Fed pursue higher inflation. By the late 1970s, the inflation engine was running so fast and the effects were so widespread that the then-current Fed could do nothing about it. It took Ronald Reagan’s new fiscal policies and the drastic steps of his new Fed Chairman, Paul Volker, to bring inflation under control. However, prior to mid-1982, when the stock market jumped as it saw success around the corner, the first 18 months into Reagan’s initial term were mighty uncertain and unhappy days.


What could this mean? I was about 10 years old in the late 1970’s and I remember my dad saying gold is predicted to go to US$2000/ounce – it was trading around US$800/ounce and already had a huge rise due to double digit inflation and interest rates. Families couldn’t afford their mortgages and many had to declare bankruptcy.

The economy could mimic that of the late 1970’s (as fashion already has), gold could be the real benefactor (more on gold to follow).

Continuing on the theme of what transpired in 2018, North Korea seemed to come along but for how long – just to be replaced by a trade war with China.

Poverty has seemed to rise witnessed first-hand by the increasing numbers of the homeless my charity feeds.

Once wealthy countries like Venezuela are quickly becoming third world countries.

Esports and cannabis were ascending while bitcoin and other cryptocurrencies lost its luster.

The markets were bipolar – especially the last month of the year.

So what does 2019 hold in store?

Note that these are my predictions – do your own due diligence.

I believe the markets will experience false rallies in the first half of the year. The price of oil will most decline. Then the increase in interest rates may take hold and the markets may likely begin its ‘real’ down turn. My loyal followers know that I have been calling for an economic downturn from late 2019 into 2020 and beyond. When I predict an economic and stock market downturn, I am not referring to a mild collapse.

So what sectors may benefit in an economic crisis? Firstly, precious metals. This may be time for gold and silver to finally shine. Could we finally see a breakthrough past $2000/ounce? We may very well before the economic crisis is over.

As well, generally during economic collapses, individuals consume more alcohol and gamble more. With the legalization of cannabis in Canada and some States, cannabis consumption may increase and related stocks may continue to outperform.

I am preparing by taking advantage of any swings in the market and diversifying more into precious metals. Let the bratty kids believe that cryptocurrencies will rule the world. I’ll keep on the gold train all the way to the bank.

Happy Investing!

Dr. Kal Kotecha



© 2010 Junior Gold Report and TechMoney360

Junior Gold Report and TechMoney360 Newsletter: Junior Gold Report’s and Tech Money 360’s Newsletter is published as a copyright publication of Junior Gold Report (JGR) and TechMoney360 (TM360).  No Guarantee as to Content:  Although JGR/TM360 attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. It may contain errors and you should not make any investment decisions based on what you have read on here. JGR/TM360, its associates, authors, and affiliates are not responsible for errors or omissions. By accessing the site and receiving this email, you accept and agree to be bound by and comply with the terms and conditions as set out herein. If you do not accept and agree to the terms you should not use the Junior Gold Report and TechMoney360 sites or accept this email. Consideration for Services: JGR/TM360, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in the featured companies, as well as sponsored companies which compensate JGR/TM360 as such our opinions are biased. We may hold potions in and trade these stocks of the companies we profile and as such our opinions are biased. JGR/TM360 and its’ owner and affiliates/associates may buy/sell and trade the featured companies from time to time. JGR/TM360 has been paid by the companies. Thus, multiple conflicts of interest exist. Therefore, information provided here within should not be construed as a financial analysis but rather as an advertisement. Conduct your own due diligence: The author’s views and opinions regarding the companies featured in report(s) are his/her own views and are based on information that he/she has researched independently and has received, which the author assumes to be reliable. You should never base any buying/selling/trading decisions off of our emails, newsletter, website, videos or any of our published materials. JGR/TM360 aims to provide information and often stock ideas but are by no means recommendations. The ideas and companies featured are highly speculative and you could lose your entire investment – consult a licensed financial advisor if you are considering investing in any of the featured companies. Subscribers/readers are encouraged to conduct their own research and due diligence. The companies mentioned are high risk and considered penny stocks that contain a high risk of volatility, therefore consult your investment advisor and do your own due diligence before purchasing. Never base any investment decision on information contained from our emails, newsletter, website, videos or any of our published materials. No Offer to Sell Securities: JGR/TM360 is not a registered broker dealer, investment advisor, financial analyst, stock picker, investment banker or other investment professional. JGR/TM360 is intended for informational, educational and research purposes only. It is not to be considered as investment advice. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR/TM360 may contain links to related websites for stock quotes, charts, etc. JGR/TM360 is not responsible for the content of or the privacy practices of these sites. Information contained herein was extracted from public filings, profiled company websites, and other publicly available sources deemed reliable. Information in this report was taken on or before writing and dissemination and may not be updated. Do you own due diligence as information and events can and do change. Published reports may reference company websites or link to company websites and we disclaim and responsibility for the content and accuracy of any such information or website. Release of Liability: By reading and/or watching videos by JGR/TM360, you agree to hold JGR/TM360, its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by the use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report/TechMoney360 does not take responsibility for the accuracy of forward looking statements and advises the reader to perform their own due diligence on forward looking numbers or statements.