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

Profiting from Fed Rate Fallout

Since last week: 

The Fed rate hikes came and the market reacted. Stocks went down, gold went up, and investors are left wondering what comes next. 

1. Fed Rate Raise

As many anticipated, the Federal Reserve raised rates. The quarter-point raise was the ninth in a year, and the market fell on the news. There might be more rate hikes still to come later in the year, and officials are already anticipating slower economic growth. As an investor, it is up to you to prepare for this increasingly tricky market. 

2. More Lithium

America needs more lithium; that’s just a fact. That’s why lithium miner Albemarle (NYSE: ALB) is building what it’s calling a “mega-flex” lithium refining facility in South Carolina. The facility, when complete, will have the potential to produce enough lithium to power 2 million EVs a year. Developments like this are only going to be increasingly more common over the next few years, which is why you want to invest in lithium miners sooner rather than later. 

3. Gold’s Rise

Is gold on its way to all-time highs? Recently, volatility has done wonders for the value of gold as investors pile back into the safe haven. As confidence gets shaken in the broader market, investors are looking wherever they can to protect their wealth. Many don’t think conditions will improve anytime soon, which is why now is the perfect time to buy gold and gold stocks. 

4. A Nuclear Deal

Last Energy, a Washington-based startup that develops small modular nuclear reactors, has inked a series of deals to build 34 reactors across Europe. The deal is worth $18.9 billion and would benefit Poland and the UK once approved by regulators. This shows that demand for nuclear energy is growing and will benefit uranium miners and investors as this trend grows. 

What to Look For:

There’s still some fallout from the banking crisis, and thus the markets will continue to be skittish. Watch for prolonged volatility. 

Ryan Stancil
Editor, Daily Profit Cycle