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

Inflation Isn’t Going Without a Fight

Since last week: 

Inflation entered 2023 strong, so we have a ways to go before things begin to turn around. 

1. Stubborn Inflation

Consumer prices rose in January by 0.5 percent. The annual number was 6.4%. That means the Fed has the cover it needs to continue with its promised rate raises. So inflation has some momentum for at least the next few months. Make sure you’re still investing defensively to better deal with it. 

2. Toyota’s Shift

Toyota is getting a new CEO. Starting April 1st, Koji Sato will be helming the world’s largest automaker. One of his priorities is revamping the company’s electric vehicle strategy. Toyota has largely been behind the competition in that area, so this will make the fight for lithium supply even more fierce. That means lithium mining investors can look forward to even stronger profits in the next few quarters.

3. Tennessee’s Nuclear Plan

Tennessee’s governor wants his state to be a leader in nuclear power. Governor Bill Lee has put in place a plan to include $50 million in the fiscal 2024 budget to provide grants to nuclear power-related businesses if they relocate to or grow in his state. This may be a trend we start seeing in the states, so you want to make sure you’re investing in the companies that can provide the uranium that fuels these nuclear plants. 

4. Krackdown

Cryptocurrency exchange Kraken will pay a fine of $30 million in a settlement to the SEC and end its crypto staking service in the US. It will also have to register as a national securities exchange. This has been seen by many in the industry as hostile towards cryptocurrency, and big-name players are starting to push back. Could this be the beginning of a push to get politicians to be more friendly toward cryptocurrency?

What to Look For:

We’re nearing the end of earnings season and it isn’t looking good for many companies. This could trickle down to hiring and ripple out further from there. 
 

Ryan Stancil
Editor, Daily Profit Cycle