A Rocky Start to 2023?

Since last week: 

The Fed pivot some expected didn’t happen. Home sales are down for the tenth straight month. The signs pointing to a rocky start for 2023 are becoming increasingly clear. 

A Rocky Start to 2023? Here's how to invest.

1. Rising Repos 

Americans have been defaulting on their car loans in increasing numbers, getting dangerously close to pre-pandemic levels. For people in the lowest income bracket, the default rate is even higher than it was before the pandemic. This is just another sign that things are getting tougher for a growing number of people and that you need to do everything to protect your own wealth in a worsening system. 

2. Electric Mail

The United States Postal Service recently announced a plan to purchase 66,000 electric vehicles from different suppliers. The vehicles and associated infrastructure will cost $9.6 billion, with some of that coming from the Inflation Reduction Act. By 2026, the agency will purchase EVs exclusively. This is a big win for the ongoing climate agenda, but also highlights the need for more lithium, a key component in EV batteries. That’s why you want to invest in lithium companies now. 

3. Fidelity Gets In On Crypto

Despite being asked to reconsider by US lawmakers, Fidelity has forged ahead with offering retail customers crypto trading accounts. This speaks to long-term confidence in the sector despite the turmoil it’s going through right now. With the right guidance, you can make money in the crypto space and avoid the bad actors. 

4. Palisades Tries Again

Even though the original bid to acquire funding was rejected in November, the owner of the Palisades Nuclear Power Plant in Michigan plans to reapply for federal funding to reopen the plant. Michigan wants to be at 60% renewable energy by 2030. The money would help it perform the proper maintenance updates, prepare a workforce, and buy much-needed uranium to bring things online. That uranium, especially, is a core component in widespread future energy plans, and the companies that produce it will be some of the best investments of the next few decades. 

What to Look For:

Calls for a recession are becoming louder, but consumer confidence is flying in the face of that as inflation expectations fall. It won’t be long before we find out who’s right.