Sept. 9, 2022
Since last week:
We’ve seen more hawkish talk from the Fed, and the markets respond accordingly. The dollar remains strong and gold has largely held in place. That’s what you can expect in a market where investors don’t feel the need to put their money into any safe havens.
1. Gold’s Time
Gold has proven resilient in a time when just about every other asset has been up one day and down the next. This is all in the face of hawkish Fed policy and an uncertain market. This is presenting the kind of profit opportunity that doesn’t come around often. It’s all thanks to a recent gold discovery that might be the biggest ever. You can learn the details from a newly released video that shows footage of the actual site.
2. In It for the Long Haul
Over at the Federal Reserve, Vice Chair Lael Brainard said “We are in this for as long as it takes to get inflation down,” in reference to raising interest rates. So, in short, nothing has changed on the Fed’s mission and they are reiterating that rates will go up even as the risk of pain in the market increases. That means you will have to continue investing defensively.
3. Twenty More Years
The Tennessee Valley Authority, a federally owned electric utility corporation that services several southern states, announced this past week that it plans to extend the lifespan of its largest nuclear plant by two decades. The Browns Ferry Nuclear Plant in Alabama will stay in operation through 2055. It’s just one of several plants in the country seeing long life, a growing trend that goes hand-in-hand with the increased demand for nuclear power. This will all be a big benefit to anyone who invests in uranium.
Stop for coffee and recharge your car at the same time. That’s the idea behind a new initiative Starbucks is undertaking to install EV chargers in the parking lots at 15 of its restaurants along a 1,350-mile route between Denver and Seattle by the end of the year. It’s working with Chargepoint and Volvo to make it happen and could just be the start. With EV demand growing and states mandating their sales over combustion engine cars, we’re going to need all the charging infrastructure we can get. And that increase is going to create one of the biggest investment opportunities of the next few decades.
What to Look For
We already know another Fed rate hike is on the horizon. It’s just a matter of when it will come, how much it will be for, and how many more will follow it. Until that happens, the markets will likely continue in the fashion they have been, and havens like gold will continue to hold steady, presenting an ideal buying opportunity.
Keep your eyes open,
Editor, Daily Profit Cycle