Inflation News and Energy Breakthroughs

Since last week: 

Inflation data is out and we’re still in for a bit more turbulence.  On the plus side, inflation is dropping, albeit slowly. 

Inflation News and Energy Breakthroughs

1. Continuing Upward

Consumer prices were up in November and so the Fed hiked interest rates again. Rates went up half a percentage point, putting them in a range between 4.25% and 4.5%. The Fed indicated that rates will stay high through 2023. So you want to prepare your portfolio for the pain that’s going to come. 

2. An Energy Breakthrough

In a scientific breakthrough, scientists in California managed to trigger a fusion reaction that created more energy than it took to start the reaction. This type of energy generation has been long sought after, but there’s still a ways to go before it’s financially viable. Until that day comes, investors are looking to nuclear power via uranium, a sector that’s experiencing one of the biggest bull markets in years. 

3. Biden’s Big Loan

The Biden administration just announced a $2.5 billion loan to help GM and LP make batteries for electric vehicles. Specifically, the money will go toward manufacturing hubs in Ohio, Tennessee, and Michigan. This will do a lot to help jumpstart domestic battery production and will only spur demand for lithium. That means now is the time to get in on the companies capable of pulling it from the ground. 

4. Bankman’s Troubles Continue

The fallout from the Sam Bankman-Fried case continues. The former Bitcoin billionaire has been denied bail and is looking at extradition to the US to face charges that include wire fraud and money laundering. The whole thing has given the crypto space a black eye, but there is still money to be made as long as you invest wisely and know who you can trust. 

What to Look For:

As we head into the end of the year, recession fears still loom. You will also want to keep a lookout for retail sales for the year, with it just having been revealed that sales had their biggest decline in almost a year for November. 

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle