Fed Move Sparks Fear and Opportunity

Since last week: 

Stocks were in an uptrend heading into this week, but that changed with the Fed’s decision on Wednesday. It was expected, but the effect was no less damaging. 

The Fed did what they said they were going to do and raised interest rates

1. The Last (?) Rate Hike

We just saw the Federal Reserve raise interest rates again and the markets went down accordingly. So your debt just got more expensive and more of that pain Chairman Powell talked about reared its head. If you continue investing defensively, you’ll not only protect your wealth, but benefit when things turn around. 

2. Poland’s Nuclear Allies

Poland recently inked deals to build nuclear power plants in its country. Westinghouse will construct one while Korea Hydro & Nuclear Power will build the other. Poland is accelerating its push to become energy independent of Russia and this is just the first big step. Soon enough, they’ll be competing for uranium with every other nation looking to build out nuclear power, and people who invest in uranium miners will be the big winners. 

3. School Buses Go Electric

The Biden Administration is giving out a total of $1 billion in grants to school districts across the country to purchase 500,000 electric school buses. Fighting climate change has been a cornerstone of President Biden’s presidency and this is another step. It will go hand in hand with the revamping of the country’s electric infrastructure and truly benefit anyone who invests in the companies behind it. 

4. Gold’s Dip

Gold hit a six-week low following the announcement of Fed rate hikes. While the market is reeling from the announcement, this creates an opportunity to buy the metal at a lower price and wait for it to recover. Once it takes off, the profits could be life changing. 

What to Look For:

The midterm elections are next week. Watch how the markets react to the results more than anything else. Either way, it will set up an interesting rest of the year.

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle