These Commodities Are Where You Should Invest

Since last week: 

More jobs are added and gas prices are continuing to decline. As we head into the fall season, the economy at least has the appearance of being resilient. The real question now is how long will that last? 

These Commodities Are Where You Should Invest.

  1. Gold’s Comeback: Consumer confidence is climbing and the dollar and the jobs market are both strong. These kinds of things usually cause the value of gold to slump, but instead it’s been holding steady. The threat of continued inflation still looms, and as it becomes more persistent, that’s when gold will be the asset everyone wants to hold. 
  2. The Rising Cost of Childcare: Along with everything else, the cost to raise children has gone up. According to new research, in the US it now costs about $310,000 to raise a child to the age of 17. That’s a $26,000 increase over just a few short years ago and doesn’t include the cost of a college education. For anyone raising children or looking to do so in the future, the most important step is being prepared financially because the current system won’t provide the support needed to take on that expense. 
  3. Toyota’s Lithium Plant: Toyota is shelling out more for a new US battery plant. As more consumers buy electric vehicles, automakers are rushing to meet that demand. Toyota is upping its investment from $1.29 billion to $3.8 billion in a joint venture with Panasonic for a plant based in North Carolina. That just goes to show how quickly the industry is shifting away from the combustion engine and how demand for lithium is going to keep going up, making investors in the sector rich. 
  4. Over in Diablo Canyon: California’s last nuclear plant will live on a little longer. The Diablo Canyon Nuclear Power Plant, which is the state’s largest source of electricity, was set to close in 2025. Instead, it will now stay open five more years thanks to the passing of a last-minute proposal by the state legislature. This will help the state deal with rolling blackouts caused by heat waves in the short-term. In the long-term, this will increase the demand for uranium and benefit the companies that can provide the metal. 

What to Look For:

Traders are returning to their desks, and a lot of attention is going to be paid to whether or not Chairman Powell’s word about coming pain in the markets will hold true. When the Fed pivots, it won’t be sudden but the early signs will be obvious to anyone paying attention.

Keep your eyes open,

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle