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

Rate Hikes and Clean Energy Plans

Since last week: 

Markets rallied to close out the week as we head into the second half of 2023. Will the momentum keep up?

1. Two More

Two more. That’s how many interest rate hikes Chairman Powell thinks will be needed to bring inflation to a level the Fed is comfortable with. The comments were made at a recent conference but are simply a repeat of what’s been said since rate hikes were paused. So this isn’t at all unexpected. Even so, it’s a reminder that there’s still some turbulence ahead for investors and you need to prepare accordingly. 

2. One Last Chance at Helium

Today is the day that a helium plant in Canada goes online. This is important because helium is a crucial element in our daily lives but is quickly running out. This plant going into operation offers investors the chance to get in on this sector and profit from a resource that’s only going to get more valuable. 

3. EV Inventory

Electric vehicles still have some hurdles to jump before they go fully mainstream, but could they be getting availability out of the way? As it stands, dealers are sitting on 92 days’ supply-worth of electric cars, versus about 54 days for gas-powered cars. This shows demand is there, as is increased output from manufacturers. It’s only a matter of time before more drivers have an EV than a gas car, which means lithium demand is only going to keep going up. 

4. Belgium’s Nuclear Plan

Belgium recently signed an agreement to keep its nuclear reactors running for 10 more years. The reactors were set to be shut down in 2025. But the country backed away from a plan that mainly relied on natural gas after seeing the effects of Russia’s Ukraine invasion. Western Europe sees the need to change its energy landscape and realizes nuclear power is one of the best ways to do that. They’ll need uranium to make it work. 

What to Look For:

Student loan debt relief was thrown out. We may start to see the effects this will have on the market soon.

Ryan Stancil
Editor, Daily Profit Cycle