Darren Winters

Don’t Trust The Fed

Posted By Darren Winters on Aug 4, 2022

Perhaps don’t trust the Fed could be a more relevant trader investor mantra, rather than the well-known don’t fight the Fed. Cast your mind back to just before the financial crisis of 2008 and the Great Recession which followed, which many believe we have not exited.  Remember the former chairman of the Federal Reserve, Bernanke taking to the stage and denying a debt housing market crisis just before the financial crisis...

Cycles

Posted By Darren Winters on Jul 21, 2022

In the age of central banks, perhaps there are two cycles investors should keep on their radar; the psychology of the market cycle and central bank liquidity cycle. If investors can pinpoint where the market is in these two cycles, it could help them optimize entry and exit points Let’s zero in on the psychology of market cycles with a price on the vertical axis and time on the horizontal axis. The first phase of market...

Real Estate Crash

Posted By Darren Winters on Jul 7, 2022

The stars could be aligning for the mother of all real estate crashes. Since 2022 the Fed has been tightening, with rate hikes and quantitative tightening, reducing the size of its assets on its balance sheet to tackle inflation, which resulted in the crash of everything. More than ten trillion dollars of wealth has been slashed from the value of pension funds and investment portfolios since 2022, with stocks, bonds, and cryptos...

Central Bank Liquidity

Posted By Darren Winters on Jun 23, 2022

If the direction of central bank liquidity influences asset prices, then it is central bank liquidity that also determines when cash is king and when cash is trash. Famous billionaire hedge fund investor Ray Dalio often refers to cash as trash, but cash can also be king. How often have you heard people lamenting being unable to participate in the bargains because they have no surplus spending money?  So when money is tight, bargains...

CBDC Is Gaining Momentum

Posted By Darren Winters on Jun 13, 2022

Central Bank Digital Currency (CBDC) is gaining momentum, according to the results of 2021. BIS survey on central bank digital currencies,published in May  noted that more than a quarter of central banks are developing or running concept pilot plots. The BIS paper consisted of 81 central banks surveyed, which concluded that CBDC is gaining momentum due to several factors The pandemic has spurred demand for contactless digital...