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

The Economy Slows as Debt Piles On

Since last week: 

Signs of an economic slowdown are becoming more evident. This is causing many to believe that a rate hike pause is coming. 

1. Money Troubles Pile On

New data shows that credit card debt is climbing and so are car loan delinquency rates. It’s gotten to a point where these things are now higher than they were before the pandemic. Student loan repayments are right around the corner, and that could mean trouble ahead for the economy at large. Protect your portfolio now. 

2. Ford’s Retirements

Three Ford models, the Escape, the Edge, and the Transit Connect, are having their gas-powered models retired as the company makes way for an expanded roster of electric vehicles. Like many other carmakers, Ford has gone all-in on EVs because the combustion engine’s time is coming to an end. That’s why you’re going to see a spike in lithium demand. 

3. Lithium Shortage 2025

With that increased lithium demand is likely to come a shortage. It could come as soon as 2025 according to a recent report from BMI, a Fitch Solutions research unit. A large number of factors contribute to this possibility, but the fact that it’s likely isn’t something that should be overlooked. One name in the lithium industry is set to thrive during the demand boom thanks to its unique resource.

4. Gold Holds

Gold has been holding steady amid shifting signs of economic trouble. Inflation pressures, like a lower-than-expected rise in personal income and weaker-than-expected employment numbers weighed on the economy while gold held on to most of the gains it had made in recent weeks. This could be a sign of how gold will perform when things take a downturn, which is looking like a growing possibility. You will want to prepare accordingly. 

What to Look For:

The signs of a downturn that we’ve been seeing are in their earliest stages, so more could be coming very soon.

Ryan Stancil
Editor, Daily Profit Cycle