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My Market Prediction Shocked Many Investors

Editor’s note: Marc Chaikin has more market experience than anyone we know…

Before founding Chaikin Analytics about 15 years ago, he worked for several decades on Wall Street. Long-time readers know that he started in the business before we landed on the moon.

So when Marc makes a prediction about the markets… we’re listening.

This brings us to today’s essay – first appearing in the Power supply March 22, 2023…

Anyway, Marc explains how the Power Gauge alerted him to a major change in the market months before it happened. And even better, it helps identify another change today…

In November 2022, I shared a major prediction during a special Chaikin Analytics online event…

This probably seemed “too much” for many investors.

At the time, I said that “a major change in our financial system…could lead to a run on the banks in 2023.”

However, I did not know that this situation would involve Silicon Valley Bank. And I didn’t realize that people would rush to empty their bank accounts.

I didn’t expect the situation to unfold Exactly as it did. No one could have.

But when I shared my prediction, it was clear…

Rising interest rates and low-yielding bank accounts were changing the landscape.

I expected a lot of money to start flowing out of the banks. And I expected that this money would start flowing into areas where investors could get a higher rate of return.

It’s just a matter of basic economics.

It also seemed clear that the situation could worsen and cause volatility in the markets. And of course, that’s exactly what happened from November 2022.

My point is simple…

We cannot predict specific market outcomes. But we can still look for clues.

As I will explain today, the Power Gauge was monitoring the banks the whole time. And he saw what many financial experts and investors failed to see…

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 to this point…

Pay close attention to the power gauge value at the bottom of this table…

Different colored bars indicate Silvergate’s rating for a given day. Generally speaking, yellow is “neutral” and red is “bearish.” (And green means “bullish.” But in this case, that rating doesn’t apply.)

You will notice that the power gauge turned red (“bearish”) for Silvergate on April 5, 2022. And it remained “bearish” or “neutral” for an entire year.

In fact, the power gauge warned us against all banks in difficulty…

Our system issued a “bearish” sell signal on First Republic Bank on April 1, 2022. And it issued “bearish” sell signals on Signature Bank and Silicon Valley Bank’s parent company, SVB Financial, on the 11th and July 25 of the same year. respectively.

The Power Gauge alerted users to sell (or avoid) all of these banks long before they collapsed..

My friends, this is exactly why I built the Power Gauge…

This is my life’s work. I put everything I learned during my 50-year career in finance into it. And now the system can help ordinary investors thrive in any environment.

In the end, I don’t pretend to know Exactly what’s next for the markets.

But with the Power Gauge on our side, we can identify major changes like a run on the banks. And we can do this before most investors even begin to understand what’s going on.

Good investment,

Marc Chaïkin

PS In less than a week, I plan to share my next big prediction…

In short, a massive monetary shift is happening in America right now. And that’s a game-changer for investors this year.

When it comes to your wealth and retirement, everything is on the line today.

You need to change your strategy if you want the biggest potential gains in the future. So if you’re feeling stressed about the state of the world, I hope you’ll listen.

My special event starts next Wednesday, June 26, at 8 p.m. Eastern. This is the best way for you to understand what’s going on and how to take advantage of it.

For a preview of my prediction and to reserve your place, click here.