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

Is the Economy Breaking?

Since last week: 

It looks like things could be turning. Banks are in crisis. Not many saw this coming and it will lead to an interesting next few weeks. 

1. Bank Failures

Is the economy breaking? Is there a crisis of confidence in the banking system? Either of these could be the case, as we’ve been seeing, since the failure of Silicon Valley Bank last week. Whatever the case may be, it’s going to have broad implications for the market, and you can stay ahead of them by making sure you invest wisely. 

2. Electric Range

One of the concerns many people have when thinking about buying an electric car is range anxiety. That may not be much of an issue in the very near future. According to a recent report, the average electric car sold in the US is fast approaching 300 miles between charges. That long range, paired with government incentives and lowering costs, could help speed up EV adoption over the next few years. This is good news for anyone investing in the lithium that goes into the batteries powering these vehicles. 

3. Gold Holding Firm

The wider market’s recent trouble stemming from bank failures has been a boon for gold. In the past week, the price has shot up past $1900 per ounce and has held firm there. People are suddenly remembering that gold has a historical reputation as a hedge against market volatility and they are coming back to it. This means now is the perfect time to get in on gold before it really starts taking off. 

4. Crypto Banking

Cryptocurrency also enjoyed some good fortune following recent bank troubles. Bitcoin itself went above $26,000. Could this be the beginning of a new bull market for digital currency? Investors will want to protect their wealth any way they can, and seeing crypto as a haven could be one way they accomplish that.

What to Look For:

The Fed’s next meeting is on Wednesday, March 22nd. We’ll see what they plan to do about interest rate hikes and how the recent bank failures may have informed policy.