Weekly Marketing Report 05-18-2024 | Silver Savior
Recent market data suggest several concerning trends that could impact the dollar’s value. Investors are advised to closely monitor developments in the housing and automobile sectors, commodity prices, and precious metals markets, as well as credit and government financial metrics, to make informed decisions.
The outlook for the next three months indicates heightened volatility and a possible turn towards safer investment havens.
Housing Market:
– Housing starts have declined by 5% from the previous month, signaling a potential slowdown in the housing market.
– Foreclosure rates have significantly increased, suggesting growing financial stress among homeowners.
– Mortgage rates continue to rise, decreasing affordability and potentially stalling market momentum.
Automobile Market:
– Auto sales have dipped by 7% compared to last quarter, possibly due to rising interest rates and supply chain disruptions.
– Used car prices remain elevated, reflecting ongoing inventory shortages.
– The electric vehicle (EV) market continues to expand, albeit slowly due to price hikes in raw materials.
Energy and Commodities:
– Crude oil prices experienced a 10% increase, influenced by geopolitical tensions and production cuts.
– Natural gas prices are up by 15%, with seasonal demand and export constraints being major factors.
– Shipping costs remain high, pressuring margins for goods reliant on long-distance transportation.
Gold, Silver, and Precious Metals:
– Gold prices have risen 4%, driven by investors seeking safe-haven assets amidst market uncertainty.
– Silver and other precious metals exhibit similar upward trends, reflecting increased investor apprehension.
Credit Card Debt and Foreclosures:
– Credit card debt levels reached new highs, suggesting consumers may be overleveraged.
– The increase in foreclosures could indicate financial strain spreading across multiple economic sectors.
Government Spending and Manufacturing:
– Government spending shows no sign of contraction, potentially contributing to inflationary pressures.
– Factory closings and manufacturing issues have been reported due to prolonged supply chain challenges.
3-Month Market Forecast:
The general outlook for the next quarter suggests that investors may continue to face challenges. The housing and automotive sectors will see further softening with the possibility of increasing interest rates to combat inflation.
Continuously monitoring the energy market is crucial, as prices are subject to volatility resulting from geopolitical events.
The dollar’s strength might be tested if investors move increasingly towards traditional safe havens such as gold and precious metals, signaling a lack of confidence in higher-risk asset classes.
Furthermore, the long-term sustainability of government spending and consumer debt levels will be critical in assessing potential economic headwinds.
Investment Recommendation:
Diversifying into more stable asset classes seems prudent for those seeking to move away from riskier investments. This should include:
– Fixed-income securities with a focus on quality issuers and shorter maturities to mitigate interest rate risks.
– Precious metals to hedge against currency devaluation and market volatility.
– Utility and consumer staple stocks that tend to be less sensitive to economic swings.
– Investing in low-debt companies with strong cash flows in sectors less prone to supply chain disruptions.
Caution should be maintained when exposure is taken to sectors such as tech and consumer discretionary, where valuations and debt levels could be vulnerable in a tightening monetary environment.
The Market For War:
War is a major product of “super power” nations. As we look over the markets we see the war market ticking upward. Russia is currently warning America and Nato nations to stop supporting Ukraine against them. Israel on the other hand is fomenting war in the middle East as a result of the ongoing slaughter of Palestinians.
Meanwhile those who benefit from endless money creation and the sale of war implements are saturating the market with their products.
War preparation includes financial considerations. Holding physical monetary assets in your personal possession, keeping supplies of food, water and cash on hand and making plans with family and friends to react to situations such as power outages, food shortages etc. is prudent and practical plan to weather storms that are our out of our control.
Be not deceived – be prepared ~ Silver Savior
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* Note: We are not giving advice; we only give our opinion; we are not financial advisors. This article only represents our thoughts about the economy.
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