December’s CPI report announced a 0.1% decrease compared to November. This means a 25 point increase is likely for next month’s Fed meeting. Within the grand scheme of things, there’s a guarded optimism arising. First, there’s a likelihood of smaller interest rate increases over a longer period of time. Second, there’s a tension between “sticky” services prices that tend not to decline so easily and CPI figures that are skewed by “several months” old shelter data (housing has been dropping). Finally, a mild recession is still the flavor of the long-term outlook, with the inverted yield curve for bonds having decreased to -0.62 basis points.
Stock Tickers to follow:
- Gold (GLD)
- Oil stocks: SLB, VLO, etc.
- The UK FTSE 100
The US dollar index has now dropped to ~102, boosting the value of Gold.
Take your pick! Oil-related stocks have also seen a boost due to easing inflation indicators, news about China’s moderated stance on US relations, and adjusted import quotas (due in part to a weaker US dollar).
The UK’s FTSE 100 massively outperformed last year, like one of the Art of the Bubble’s portfolio’s, it held oil and banking stocks during the pandemic conditions. To find our more, subscribe to our free news letter!
Crypto Tickers to follow:
- BTC
- Gitcoin (GTC)
- AVAX
Well, we’re in a crypto bounce. Right now, follow the king: BTC.
Apart from that …Gitcoin is a crowdfunding platform that has launched its alpha test in partnership with Fantom and UNICEF. If the test goes well, it will boost Gitcoin’s role as “the largest quadratic funding platform in the world, with its grants program having distributed $38M in funding to date.”
AVAX has experienced a boost due to its partnering with Amazon Cloud Services. At 1.2 Labs we consider this to be "soft news". To find out more as to why and how this matter, subscribe to our The Art of the Bubble free newsletter!
-Todd Mei, PhD
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