Good Day Friends, I know it’s the weekend so let’s make this short and sweet. Here is a quick look at the markets we follow as we head into the second week of April.
### Economic Overview:
U.S. economic data indicates a robust job market with 303,000 jobs created in March, significantly surpassing expectations. While this bodes well for economic stability, it suggests continued inflationary pressures, which may influence the Federal Reserve’s interest rate policies. Commodities, particularly energy, and precious metals, are seeing volatility with oil reaching a five-month high and gold prices oscillating as they test support levels around $2,300 per ounce.
### Housing Market:
Housing affordability remains a pressing concern as household and consumer debt rise, and mortgage demand wanes. Despite these challenges, there are nascent signs of recovery in the housing market, with Fannie Mae forecasting a rise in home sales transactions and slow moderation in home price growth.
### Automobile Market:
The rising interest rates and restrained consumer spending may impact automobile loan growth and defaults. Data suggests motor vehicle loans are substantial, warranting close monitoring for delinquency rates. Here’s an article looking at the rising delinquency rates for automobile loans. Credit Card and Auto Loan Delinquencies Continue Rising; Notably Among Younger Borrowers
### Energy Market:
Energy prices, particularly crude oil, are fluctuating notably, driven by geopolitical events and demand recovery. The U.S. remains a prominent exporter of liquefied natural gas amidst a global energy shift. GeoPolitical events will assuredly continue to push oil prices higher. Last week we learned that Israel bombed an Iranian Diplomatic compound in Syria. Iran has notified the United States that a retaliation will be forth coming. We can expecting rising energy prices going toward summer.
### Precious Metals:
Gold and silver prices have been climbing, with gold hitting record highs and silver reaching a two-year high. This trend may continue given the geopolitical uncertainty and fiat currency dynamics. Debt market instability, likely leading to hyper inflationary bailouts will continue to push precious metals higher. For those, like me, that know Silver is one of the most undervalued assets in the market space will likely see this as the calm before the spike. For some inspiring words about Silver check this out.
### Commodities:
Commodity prices are broadly up, with particular attention on metals due to their role in technology and electric vehicle production. Agricultural commodities also remain under the spotlight given the global food supply chain strains. Well read folks already know the food supply is under deliberate attack. Those that would be gods have been hammering away at both ends of the food supply – inputs and outputs. Investing in food cannot be a wrong move.
### Credit Markets:
Credit card debt has soared to $1.13 trillion, highlighting a potential area of economic stress for U.S. consumers. Rising interest rates have led to an increase in delinquencies, although they remain off historical peaks. More information here.
### Financial Market Forecast (3-Month Outlook):
– **Housing Market:** Supply may improve marginally but not enough to significantly ease affordability concerns. Home prices are expected to stabilize, with moderate growth predicted.
– **Automobile Market:** Auto loans may see a tightening in credit conditions amidst higher interest rates, and sales may experience sluggish growth due to affordability issues.
– **Energy Market:** Volatility will likely persist, but a gradual rebalancing in oil supply and demand is anticipated, with prices stabilizing at elevated levels.
– **Precious Metals:** Gold and silver are forecasted to maintain their appeal as hedges against inflation, with potential additional gains in the coming quarter.
– **Commodities:** Anticipate continued strength in commodity prices, supported by global demand and supply constraints, particularly in metals and agriculture.
– **Credit Markets:** Credit card debt levels are expected to remain elevated, with a potential increase in delinquency rates as consumers navigate the inflationary environment and higher borrowing costs.
### Investment Strategy:
Investors are advised to seek shelter in traditionally safer assets like gold and other precious metals amidst ongoing uncertainty. Considering diversification into commodities with growth potential such as agricultural goods and metals used in technology may be prudent. Cautious attention to the credit market is recommended, with a focus on high-quality bonds as hedging instruments.
Well folks, that’s the short story of the current situation. But take this as just a snap shot in time. We are all being herded towards a financial collapse on the order of the fall of Rome. If you are interesting in following the story from a strong point of view check out Greg Mannarino’s latest here.
See ya in the next installment.
Be not deceived – be prepared ~ Silver Savior
* Note We are not giving advice, only our opinion, We are not a financial advisor. This article represents our thoughts about the economy only. Do your own due diligence – think for yourself.
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