Categories: General Market Commentary- DPC
Topics: General Market Commentary- DPC

22-Year Highs and EV Alliances

Since last week: 

The rate hike everyone said was coming is here. Will it be the nail in inflation’s coffin that the Fed is looking for?

1. The Highest in 22 Years

Like many predicted, the Federal Reserve raised interest rates one more time. This time it was a quarter point increase, bringing rates into the 5.25%-5.5% range, the highest it’s been in 22 years. Now it’s a question of whether this is the last one. Some analysts believe so but Chairman Powell has left the door open. Whatever the case, there are investment strategies you can employ to best protect your wealth. 

2. China’s Copper Boost

The price of copper popped after China announced a plan to boost the country’s property sector, which has been ailing as of late. Copper is a central component of construction, and this kind of increased activity would certainly boost already climbing demand. One company, thanks to its new method of extracting hard-to-reach copper, would benefit from this increased demand, and so would its investors.

3. Japan’s Reactor Fund

Japan’s government is considering a plan to provide financial aid to utilities so they can upgrade existing nuclear power plants. It’s the latest move the country has made to reintroduce nuclear power to its energy grid after the 2011 Fukushima disaster and, if successful, would boost uranium demand. That means more profits for uranium investors.  

4. An EV Alliance

Several major car companies have come together to build a massive electric vehicle charging network. GM, BMW, Honda, Hyundai, Kia, Mercedes-Benz, and Stellantis want to make a network that will rival Tesla’s. The network is set to include at least 30,000 plugs and addresses availability of chargers, one of the biggest barriers to EV adoption. If consumers have more charging available, that could lead to more EVs on the road, which will increase demand for the lithium that powers these vehicles. That means good things for lithium investors. 

What to Look For:

Key metrics for inflation look to be starting to cool. If this holds, the Fed’s desired effect may be in reach.

Ryan Stancil
Editor, Daily Profit Cycle