Editor’s note: Marc Chaikin has more market experience than anyone we know…
Before founding Chaikin Analytics about 15 years ago, he worked for many decades on Wall Street. Longtime readers know he started in the business before we landed on the moon.
So when Marc makes a prediction about the markets… we listen.
That brings us to today’s essay – which first ran in the PowerFeed on March 22, 2023…
In short, Marc explains how the Power Gauge alerted him to a major change in the market months before it happened. And even better, it’s helping to pinpoint another shift today…
In November 2022, I shared a major prediction at a special Chaikin Analytics online event…
It probably felt like “too much” for many investors.
At the time, I said that “a major shift in our financial system… could lead to a run on the banks in 2023.”
Now, I didn’t know that this situation would involve Silicon Valley Bank. And I didn’t realize that folks would rush to clean out their bank accounts.
I didn’t expect the situation to unfold exactly like it did. Nobody could have.
But when I shared my prediction, it was clear…
Rising interest rates and low-yield bank accounts were changing the landscape.
I expected a lot of money to start flowing out of banks. And I expected it to start flowing into areas where investors could earn a higher rate of return.
That’s just basic economics.
It also seemed obvious that the situation could worsen and cause market volatility. And of course, that’s exactly what happened starting in November 2022.
My point is simple…
We can’t predict specific market outcomes. But we can still look for clues.
As I’ll explain today, the Power Gauge was watching the banks the entire time. And it saw what many financial experts and investors didn’t…
Silvergate Capital was the first domino to fall.
In March 2023, the crypto-focused bank announced a plan to wind down its operations. The chart below shows Silvergate’s performance leading up to that point…
Pay close attention to the Power Gauge rating at the bottom of this chart…
The different-colored bars show the rating for Silvergate on any given day. Broadly speaking, yellow is “neutral” and red is “bearish.” (And green is “bullish.” But in this case, that rating doesn’t apply.)
You’ll notice that the Power Gauge flipped to red (“bearish”) for Silvergate on April 5, 2022. And it remained either “bearish” or “neutral” for an entire year.
In fact, the Power Gauge warned us about all the troubled banks…
Our system flashed a “bearish” sell signal on First Republic Bank on April 1, 2022. And it flashed “bearish” sell signals on Signature Bank and Silicon Valley Bank’s parent company, SVB Financial, on July 11 and July 25 of that year, respectively.
The Power Gauge alerted users to sell (or avoid) all these banks long before they collapsed.
Folks, this is exactly why I built the Power Gauge…
It’s my life’s work. I’ve put everything I learned in my 50-year finance career into it. And now, the system can help everyday investors thrive in any environment.
In the end, I don’t pretend to know exactly what’s coming next for the markets.
But with the Power Gauge at our side, we can pinpoint major shifts like a run on the banks. And we can do it before most investors even begin to figure out what’s happening.
Good investing,
Marc Chaikin
P.S. Less than a week from now, I plan to share my next big prediction…
In short, a massive monetary shift is happening in America right now. And it’s changing the game for investors this year.
When it comes to your wealth and retirement, it’s all on the line today.
You need to shift your strategy if you want to see the biggest potential gains going forward. So if you’re feeling stressed about the state of the world, I hope you’ll tune in.
My special event starts next Wednesday, June 26, at 8 p.m. Eastern time. It’s the best way for you to understand what’s going on and how to take advantage.
For a sneak peek of my prediction and to save your spot, click here.
