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

Falling Inflation and Rising Layoffs

Since last week: 

Inflation continued slowing in December, according to the latest CPI numbers. Could this be putting the Fed in position to slow rate hikes? 

Falling Inflation and Rising Layoffs

1. Amazon Layoffs and Shrinking Big Tech

All is not well at Amazon and Salesforce, two of the world’s largest companies. Both companies recently announced a massive round of layoffs, with the number at Amazon being 18,000. This is just the latest in a larger trend of big tech shrinking amid a slowing economy. It’s something every investor should be paying attention to in order to protect their wealth. 

2. M-B’s Chargers

Mercedes-Benz AG has committed to building a global network of 10,000 ultra-fast chargers throughout the world. The effort will begin in the US before expanding to the EU and China. 

This comes just as global EV infrastructure investment has reached $100 billion and is set to continue to climb for years to come. That means the world is going to need the lithium that powers the cars that use these chargers, setting up miners for a massive payday. 

3. China’s Rebound

China is reopening its economy after loosening COVID restrictions. It’s already having an effect on the commodities market, with metals used for the property sector seeing a jump in price. Some analysts expect China’s economic rebound to be quick, which means the climb in commodities prices will be quick. That makes it an ideal investment opportunity. 

4. A Quick 3X Gain

In recent weeks, a meme token called Bonk skyrocketed in price before breaking down. Investors who timed it right were able to triple their money (or more) in a short amount of time. This just goes to show how you can take advantage of crypto volatility to reap a quick profit. You just have to know exactly when to buy and sell.  

What to Look For:

The Biden administration is set for its first fight with the new House Republican majority as the country approaches the debt ceiling. If the fight drags out, it will damage markets as well as consumer confidence. 
 

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle