Winners and Losers of Inflation

As we head into the second half of 2022, investors have more questions than answers. The stock market has posted its worst first six months since 1970, so it’s no wonder people are anxious about what the next six months will look like. Here are some stock market news stories about sectors we have been covering and recent developments that show how they may change over the rest of 2022.  

This past week, world leaders wrapped up the G7 summit with a plan to establish a “Climate Club” by the end of the year. This plan includes “a highly decarbonised road sector by 2030” as well as “a fully or predominantly decarbonised power sector by 2035.” In short, its aim is to help establish international standards for climate-related regulations related to trade. This will likely end up being an important step in the fight against climate change on the world stage, and the green industry will only benefit. 

Winners and losers of inflation and how you can profit.

The Future of Electrics

If you don’t have an electric vehicle yet, it may not be long before you’re behind the wheel of one. That’s the belief of Exxon Mobil CEO Darren Woods. During a recent interview, he stated that he believed every passenger vehicle sold in the world by 2040 will be electric. Whether he’s ultimately right or not, the trends are pointing to electric vehicles taking to the roads at an increasing rate. It’s why nations are overhauling their power infrastructure to include charging stations, and it’s why this will be one of the big energy investment stories of the next few decades. 

Don’t Ignore This Sign

There are signs that the housing market is cooling down. Inventory is sitting on the market longer, sellers are lowering their asking prices and, most tellingly, buyers are dropping out. We already know that spending is tightening across the board, and this may be one of the biggest signs yet if the trend continues. Here’s how to prepare for the sustained stock market downturn that will follow. 

Winners and Losers of Inflation

If you haven’t been hearing about people worried about living paycheck to paycheck, you will soon. A recent survey showed that 58% of Americans are living this way thanks to inflation at 40-year highs. That’s roughly 150 million adults, and it’s a number that’s only going to go up. As an investor, you can buy into inflation stocks that will weather this market. Even as prices go up, commodities are still needed for infrastructure projects all over the world. These are the commodity stocks you should be buying. 

Game on for Crypto 

As cryptocurrency prices continue to fall, currency miners are getting out of the business and unloading their hardware. To the relief of gamers, this has flooded the market with Graphics Processing Units (GPUs) needed to run high-end PC games and ended a two-year long drought of the components. These falling crypto prices aren’t just good for gamers, they’re good for anyone interested in buying crypto. Like everything else, cryptocurrency markets are spiraling, but the next bull market will be here before you know it. Here are the moves you should be making in that sector. 

What to Look For

Expect Q2 earnings to start trickling in over the coming weeks. Don’t expect the majority of them to be pretty. The outlook likely won’t be either. 

Events of the past week — the Roe v Wade decision, the Supreme Court’s ruling on the EPA, etc. — are going to be on the minds of voters as we get closer to this year’s midterms. Those, alongside continued economic worries, inflation, and the Ukraine war, will shape the political landscape and, by extension, the investment landscape. Pay close attention to what elected leaders and those running for office say and how the market acts in response.

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle