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

A Good Week for Gold and Lithium

Since last week: 

Chairman Powell has doubled down on what he needs to see in order to cut rates. Meanwhile, gold and lithium have shown just why they’re worth investing in. 

1. Unusual Indicators

The talking heads will go on and on about different market forces that signal whether or not we’re in a recession, but sometimes anecdotal evidence can give strong insight into how people are feeling. Social media of late has people talking about doing things like skipping salon treatments and eating out for lunch to save money. These things may be mundane, but they are based on how people think things are going, and are worth paying attention to. Doing that can help you form an investing strategy that will weather the kind of environment people think we’re in the middle of.

2. A Lithium Greenlight

One bit of good news can make a massive difference for a single stock. A startup lithium miner that has partnered with General Motors for EV batteries recently learned that. It was given approval by the courts to proceed with mining at what might be the largest lithium deposit in the US. This would put it and its investors on course to profit from the growing trend of EV adoption. 

3. Australia’s Crypto Laws

Australia has just proposed new regulations for the crypto industry. Namely, crypto exchanges will have to register with financial authorities and comply with laws that fight money laundering and terrorism. These steps to regulate crypto show a growing movement of governments acknowledging that crypto has a place in finance. You’ll want to make sure you know which coins to back as this movement grows.

4. Gold’s Continued Fortunes

Earlier this week, Fed Chairman Powell spoke to the Economic Club of Washington and repeated that the recent jobs report shows that rates need to keep going up but that inflation will likely slow this year. This gave gold a boost thanks to the dollar’s rise in value taking a pause after Powell’s comments. This continues gold’s recent good fortune and shows why it’s something you should consider investing in. 

What to Look For:

Zoom and eBay are two more tech companies that have announced more layoffs, but they may not be the last. That will be one of the big market trends to watch. 
 

Ryan Stancil
Editor, Daily Profit Cycle