Joel Elconin – Fed Rate Hikes, Geopolitical Tensions, Financial Stocks, Bitcoin, Growth Stocks, Gold, and Dividend Stocks

Joel Elconin, Co-Host of the Benzinga PreMarket Prep-Show, joins us to focus on the volatile US markets where we have seen weakness in a number of sectors based on expectation for the Fed rate hiking cycle to start in a few months, and due to geopolitical turmoil in Ukraine.  We opine on just how many rate hikes the Fed can execute before the market sends a signal to ease up. 


Next Joel discusses some financial stocks and payment stocks he likes in consideration of the potential of rising rates. This leads into a discussion about Bitcoin being chopped in half since the November highs, and that it didn’t end up being the inflation hedge or store of value that has been proposed by crypto bulls. Joel points out how the cryptos really trade more like tech or growth stocks, and so we review whether the selloff in that sector is due for a technical bounce.


We wrap up by looking at the recent move into the safe havens of the US dollar, bonds, gold, and Joel also discusses his preferred way to seek safety though dividend paying companies with control over their pricing to match inflation.



Click here to visit the PreMarket Prep website.

    Jan 25, 2022 25:27 PM

    Crypto Collapse Erases More Than $1Trillion In Wealth, Forcing A Reckoning For Everyday Investors
    Tory Newmyer, Jeff Stein, Nitasha Tiku – 3h ago
    “Thousands of Americans who jumped into crypto investing over the past two years in hopes of a rocket ride to instant wealth now face a similar reckoning: Prices for cryptocurrencies — from relative stalwarts such as bitcoin and Ethereum to more exotic tokens — have cratered since reaching all-time highs in early November, wiping out an astonishing $1.35 trillion in value globally, nearly half of the total market, according to CoinMarketCap.”

    Jan 25, 2022 25:33 PM

    Hmm, is that because China shorted them?

      Jan 25, 2022 25:18 PM

      Russia also is cracking down on Cryptos in addition to China. China also cracked down on crypto mining because of the huge energy consumption it takes, and this affected the hash rate which also affected the bitcoin network.
      Meanwhile, as DT pointed out on one of the other blogs, El Salvador’s embrace of Bitcoin is receiving pushback from the big boy banksters at the International Monetary Fund.

      Drop Bitcoin as legal tender IMF urges El Salvador.

        Jan 25, 2022 25:49 PM

        I think crypto mining is an insane business model

        It creates zero value or even negative value for the society

          Jan 26, 2022 26:54 AM

          Ditto……Thomas………….I agree 100%………… one big scam…… People will look back on the cypros as tulip bulbs…..
          When the grid goes down and you lose your wallet…… GOOD LUCK……. SHEEPLE…….

    Jan 25, 2022 25:16 PM
    Jan 25, 2022 25:31 PM

    Crypto -perplexion in unfolding as bears and bulls duke it out with religious fever, and shorts who can read a chart are having a field day……………… this day, I’m still trying to find someone on this planet to explain to me what a bitcoin looks like, feels like, tastes like or smells like.?………………does it hurt if you drop it on your foot, or if someone throws and hits you in the head with it? Other than a logo on a screen, and something you just buy as a trading vehicle and put into a pretend wallet, none of the big theories of why it is the best new imaginary cyber-currency have held any water for me to date. Perhaps it’s till too early or maybe it’s all over with over 8,000 crypto competitors trying to compete in this niche space, just like the tech bubble 2000………………only the 2.0 version………………..What ever is going on……………’s buyer beware as usual and I’m just glad I am on dry ground…………………… and not getting a crypto ennema while a few bears hold me down !

      Jan 25, 2022 25:21 PM

      Good questions LarryC. What about this age old question:
      “If a Bitcoin falls in the woods and no one is around, does it make a sound?”

        Jan 25, 2022 25:41 PM

        It is humorous and purposefully convenient that Bitcoin picked the symbol of a “coin” when it’s not a coin (or even tangible) and it also utilizes the verbage of “mining” to do the mathematical proof of work verification on the bitcoin network. This is the obvious attempt to directly tie it to something like gold or silver as currencies and it presents itself as Gold 2.0.
        As we have seen by the 50% crash in bitcoin in the last 2 months it’s clearly not a store of value, or a good “inflation hedge.” As for it being compared to Gold there are some overlaps but that doesn’t make them interchangeable by any stretch.
        For example the whole point of Bitcoin is a decentralized digital currency that is outside of traditional fiat currencies, it is incredibly divisible into tinier Satoshi units, transferable, and then there is a scarcity element and that there’s only so many bitcoins that will ever be created, making it “rare.”
        In Bitcoins defense against comparisons to the other 8000 altcoins that is often hurled against it, they don’t have those attributes so in that sense they are much different than bitcoin itself.
        The Altcoins are not decenralized nor do they have the built in programing limitation on how many of them that can be created. The other altcoins derive their value from their supposed use cases on the platforms they service (like Ethereum being a platform that can run other DeFi applications or games or NFT on it’s blockchain). Then there are other dubious altcoins that are actually considered “stable coins” used for conversion with other currencies for transacting, but that’s a whole different rabbit hole.
        Regardless, in that sense Bitcoin is unique amongst the cryptos due to being genuinely limited and decentralized. Whether it survives and is adopted in mass remains to be seen, and the regulation aspect remains a big unknown.

    Jan 25, 2022 25:54 PM

    Pfizer tested very strong, old resistance last quarter and I bet it won’t do so again anytime soon.
    PFE quarterly:

      Jan 26, 2022 26:57 AM

      Pfizer………… ONE BIG SCAM STOCK……… supporting the institution of LIARS…….
      I owned Pfizer, ….. back 10 yrs. ago………. jumped out to early……… 🙂
      Good Lord likes a cheerful giver………… lol………

    Jan 26, 2022 26:08 AM

    Bank of Canada decides not to raise rates from .25%… Surprise surprise!

    Jan 26, 2022 26:46 AM

    Craig Hemke has uncovered some interesting information in the following article. It says to me that the chance of your gold stock holdings going up won’t happen until Silver actually heads up big also. If that is fact, does it change anyone’s expectations?

    Jan 26, 2022 26:13 AM

    SPQ :
    Miners Holding As Metals Drop.
    NatGas Gap May Mean Top.

      Jan 26, 2022 26:22 PM

      UNG 8.50 possible.

    Jan 26, 2022 26:21 AM

    day gdx just holding over TAS support….Tough call today regarding direction at end of day….if powell dovish it could launch for a while…not my type of entry level..glta

    Jan 26, 2022 26:37 AM

    FWIW: On this Fed Day, now that I have oil stocks with my mix of Gold, Silver, Base Metals, Bio-Med and Royalty Stocks:
    Some Up …Some Down and currently -$133.,72
    Making progress.

    Forgot to Mention: My WIFI network has crashed 3 times this morning.

    Makes you want to go to Vegas and only bet on what is going to happen in Ukraine

    Jan 26, 2022 26:57 AM

    The drop in gold today filled a gap up on the 22nd?
    My chart doesnt show the exact date.

    I dont short anything, but if I did I would have bet that gap was going to be filled, it has now so maybe we go back up.

    Jan 26, 2022 26:55 AM

    just a reminder….1/24 is bullish hammer…1/25 is bullish engulfing…..both bars regained closing price with in the high vol. bar of 1/19….however, i do not know which direction will hold…glta

      Jan 26, 2022 26:32 AM

      2:33 gdx no good yet /GC at weekly resistance per TAS profile 1830.3

    Jan 26, 2022 26:15 PM

    lots of fed babbe with no message of consequence. Powell says will decide rate increase and its size in march meeting, in the meantime the market is doing it for him, 10 yr treasury on the uptick over 1.80. Can’t do it better himsef so why bother.
    He will not be the one to upset the strong labour market which helps Biden narrative or the continuing growth from lessened covid risk.

    Jan 26, 2022 26:54 PM

    nugt in 46…off completed 1 minute chart…glta…also volume on daily said holders are in control….this is my 4th post hope the wife does not discover… she does not scan this technical stuff…lmao

    Jan 26, 2022 26:56 PM

    another buying opportunity on gold shares. LOL Well maybe not quite yet.
    Let’s see how it handles a trade below the infamous 1800 level.