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

How the Fed Rate Pivot Opens Investment Opportunities

Since last week: 

Fed rate cuts could be coming, which led the Dow to a record high as stocks surged on the news.

1. The End of Rate Hikes

A pause and then a reversal. That was the message the Federal Reserve conveyed with the recent decision regarding interest rates. For the third time in a row, rates stayed where they were, and now the Fed is beginning to eye interest rate cuts. This all sets the stage for how you can prepare for 2024. Nick’s newest issue of Foundational Profits has some insight into what you should look for. 

2. Gold’s Momentum

Gold seizes the momentum and pushes on as the Fed signals rate cuts may be coming next year. With the Fed’s announcement, the price of gold went past US$2,000 per ounce and stayed there. Now is the time to buy, before that momentum really gains steam. 

3. A Historic Agreement

At COP28, nations reached a historic agreement to move away from fossil fuels. This is on top of a commitment to triple the deployment of renewable energy and double the rate of efficiency gains. The signal to investors to back renewable energy plays is growing harder to ignore, and there are plenty of places to start. This investment play is one of the best ways to make money on the transition. 

4. New Nuclear Technology

As the world warms up to nuclear power, new technologies are being developed to deploy it. One company, Kairos, has received a permit to construct a new kind of reactor that is cooled with a molten salt mixture instead of water. This allows the design to be smaller, safer, and more energy efficient, which are all steps in the right direction to making nuclear power more acceptable to the world at large. More innovations like this could be coming to the sector, and anyone who buys into the uranium used to power these reactors will do very well. 

What to Look For:

Gasoline is falling, which could spur spending for consumers through the rest of the holiday spending season.

Keep your eyes open,

Ryan Stancil
Editor, Daily Profit Cycle