What’s Ahead for the Market in December

Since last week: 

It’s been an up-and-down week for the market, and investors are still anticipating headwinds heading into the new year. 

What’s Ahead for the Market in December

1. The Hikes Will Continue

Chairman Powell has spoken. In recent comments earlier this week, Jerome Powell said that the Fed would continue raising interest rates to cut inflation. These new raises, however, wouldn’t be as large as the last few have been.  Even so, that’s all the more reason why investors should take control of their own portfolios. 

2. Gold Holds Strong

On the back of the Chairman’s comments, gold saw a slight uptick in price. People know it’s a hedge in rough investment environments and will increasingly treat it accordingly. That’s why 2023 is set to be a strong year for gold. 

3. Nuclear Expansion

The Czech Republic has long been a champion of nuclear power and is looking to expand its Dukovany nuclear plant. It’s entertaining bids from three different companies, from France, South Korea, and the US/Canada to get the job done. This is just the first planned expansion of the plant. More stories like this will come out in the future, and more investors will be paying attention to uranium because of it. 

4. Brazil’s Bitcoin Move

Brazil recently moved to make it possible to use digital currencies. Lawmakers in the country approved a framework bill that lets Brazilians use Bitcoin as a payment method and recognizes digital assets as an investment asset class. This is a step forward in adoption of cryptocurrency and shows why digital currency is still an investment worth paying attention to. 

What to Look For:

With the last few weeks of the year now here, the hope is that the market will finish strong. Holiday-related retail sales could repeat the strong Black Friday sales we just saw, but companies are continuing with layoffs and the specter of recession still looms. 

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle