Categories: Stock Market
Topics: Inflation Stocks

What to Buy as Debt Rises

Since last week: 

Debt has climbed and retailers are warning of possible consumer spending slowdowns as we head into the holiday spending season. 

1. Consumer Debt Rises

As we head into the holiday season, consumer debt continues to climb. According to recently released numbers, household debt in the US climbed at its fastest annual pace since 2008 in the third quarter. Credit card balances are up 15%. A lot of this is due to interest rate increases from lenders because of Fed rate raises. That could eat into Christmas budgets as the cost of living keeps going up. That grim economic picture is why it pays to have an ironclad strategy for making money in any investing environment. 

2. Lithium’s Time

With electric cars becoming the norm in only a few short years, we’re going to need more lithium than ever. That’s why you’re going to hear a lot of stories about lithium investing over the next few months. Billions of dollars are flowing into the sector to establish a secure supply chain outside of China, and it’s going to be one of the biggest investment stories of the next few decades. 

3. Industrial Metals Are Back

Producer prices have been rising in industrial metals, thanks in part to greater demand coming from China as well as a somewhat weakening dollar. Copper is the one to watch but others will be in the same boat. These metals are all in high demand, and supply is limited. That’s why prices are going to continue climbing, and investors in the right companies are going to do very well.

4. Navigating Crypto

The cryptocurrency market is in absolute turmoil after the downfall of the FTX exchange. Now everyone is wondering what’s next for the sector. While Bitcoin and the others do face an uncertain future, there is still opportunity to be found in the sector. 

What to Look For:

More people are taking talk of a looming recession more seriously, and the Fed has indicated that a pivot might not be coming as soon as we first thought. Invest accordingly. 
 

Ryan Stancil
Editor, Daily Profit Cycle