My Market Prediction Shocked Many Investors

Doc's note: Everyone is still talking about the global banking situation given the recent defaults. And today, Marc Chaikin – of our corporate affiliate Chaikin Analytics – details the warnings signs he saw last year and how a system he created helps alert him to the coming shifts in the markets...


Last November, 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 this. Nobody could have. But last fall, it was clear that 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 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 has happened since last November.

Even though we can't predict specific market outcomes, we can still look for clues...

As I'll explain today, the Power Gauge was watching banks the entire time. And it saw what many financial experts and investors didn't...

Silvergate Capital (SI) was the first domino to fall. Almost one month ago, the crypto-focused bank announced a plan to wind down its operations. Look at Silvergate's performance over the past year...

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 over the past year. 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 from neutral to bearish for Silvergate on April 5, 2022. And it has been switching between these two ratings since then.

In fact, the Power Gauge warned us about all the troubled banks throughout last year...

Our system flashed a "bearish" sell signal on First Republic Bank (FRC) on April 1, 2022. And it flashed "bearish" sell signals on Signature Bank (SBNY) and Silicon Valley Bank's parent company, SVB Financial (SIVB), on July 11 and July 25, respectively.

In other words, the Power Gauge alerted users to sell (or avoid) all these bank stocks 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've learned in my 50-year finance career into it. And now, the system is able to help everyday investors thrive in any market 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

Editor's note: Marc's system recently triggered a market timing indicator that has only appeared a few times in the past 72 years. Last week, Marc explained exactly why today's volatility is creating a momentous shift in the financial market and how you can make big gains. Click here for all the details.