Weekly Briefing 5/15/22 – The Forecast

Weekly Briefing 5/15/22

Weekly Briefing 5/15/22

This week we would like to highlight the incredible buying opportunity now being seen in precious metals.  Silver in particular is extremely undervalued and is set to produce a strong rally to retest the 2011 high of $47.  It is now testing multi-year support and presents the best risk/reward proposition of any asset we have evaluated.

Stocks experienced another turbulent week with the S&P shedding 250 points to find support at 3,850.  The major indexes then rallied considerably Friday and are set to continue into this week.  We expect a counter-trend rally to now take place.  However, technicals remain bearish for the major indexes with the Dow, S&P, and Nasdaq all below their significant moving averages.  The VIX also remained elevated, but was able to close beneath the key 30-level by the end of the week.  Overall, we still expect higher prices to be seen in equities during 2022.  A major high should be delivered during October/November.

Last Week’s Economic Data:

Core CPI: Beat

Initial Jobless Claims: Miss

PPI: Neutral

Upcoming Economic Data:

Tuesday: Core Retail Sales, Fed Chair Powell Address

Wednesday:  Building Permits

Thursday: Initial Jobless Claims, Philadelphia Fed Manufacturing Index