She’s a 9.1 But She’s Nasty (and not in the good way)
The internet is resorting to comedic relief in an attempt to lessen the staggering blow of the recently announced CPI numbers (9.1), amongst other news that isn't necessarily up-lifting...
Friday, July 15th, 2022
Before we jump into things, welcome back to this week’s edition of the Goldiggers Weekly Wrap Newsletter, where we dig for the golden stories in today’s market. We know you know there isn’t necessarily a gold rush occurring when it comes to current market opportunities… but hey, there’s still some interesting stories floating around so we suggest you keep reading if you want to experience a little comedic relief during these “challenging times”.
Here’s how the major indicators are stacking up year-to-date:
Silver: -20.19%
Gold: -6.83%
Dow Jones Industrial Average: -13.90%
S&P 500: -18.95%
Nasdaq Composite: -26.80%
Oil: 29.32%
Bitcoin (BTC-USD): -54.66%
Ether (ETH-USD): -65.78%
Wrapping up the week with:
CPI - She’s a 9.1 but…
Precious Metals - Gold is in a danger zone
Commodities - Two words that make a bad situation worse: Fertilizer Crisis
Tech - “Sorry Elon, no take backs” - The Law
Crypto - Celsius is in hot water - what does this mean for clients?
CPI
The CPI numbers announced this past Wednesday were once again higher than predicted - this time roaring up to a fresh four-decade high.
In an attempt to mitigate the pain, the internet exploded with a series of “She/he’s a 9.1 But…” memes, and honestly, the dark humor is kind of helping.
Here are our personal favorites:
Source: @jlist21
Source: @Gemini
Source: @blocmatesdotcom
In all seriousness, this represents the largest gain since the end of 1981, and was closely followed by an inflation increase up another 1.3% from last month.
She’s a 9.1 but she’s nasty (and not in a good way). Consumers can expect to see (even) higher gasoline, shelter, and food costs, hardships which impact the most vulnerable members of our society the greatest. Many economists are predicting a recession in the next 12-months if things continue this course.
Attempts are being made to reduce the cost of consumer goods, such as Biden’s trip to the Middle East to discuss lowering high fuel prices in addition to his intent behind the Ocean Reform Act, however time will tell if these efforts prove fruitful.
Precious Metals
It’s been a tough week, and gold isn’t exempt from the pain. As the “golden child” for many traditional investors, gold has long been sought after as a safe haven for investments as the threat of a recession looms.
This week, however, gold closed out at $1706.50 USD an ounce, down 7% YTD and 2% since the start of the week. This 11-month low resulted in part from many investors opting for the durability of the USD over gold amidst this bear market.
Some experts are predicting we can see gold fall below $1700 next week.
Source: @KitcoNewsNOW
Why is it so dangerous for gold to fall below $1700? Well - consider this like the drop off point, so far gold has been plateauing around the mid seventeen hundred area - but once it drops in the sixteen hundred area, it can easily drop off all the way down to $1600 - $1550 as there isn’t a support system designed to catch it while it falls. The risk for downside is high at the moment.
Commodities
The fertilizer crisis, which is impacting many parts of the world, could worsen. A large Hungarian producer is predicting grain yields could fall 15% to 20% this year.
Both high natural gas prices and export sanctions are fuelling the fertilizer crisis, which is impacting crop production globally.
Tech
Elon is being Elon, and he’s opting for a legal battle instead of going through with his $44B Twitter deal. Previously, Elon’s experienced success in the courtroom when warding off lawsuits, however many are skeptical if he can “Musk” his way out of this one.
The Delaware Judge appointed to the case, the Honorable Kathaleen McCormick is known for her even temperament, kindness, and stone cold resolution against corporations looking to back out of their contractual obligations.
This upcoming trial might rival that of Depp vs. Heard… stay tuned.
Crypto
The collapse of TerraUSD in May massively impacted crypto lending platform Celsius to the point where they’ve announced on Wednesday that they will be filing for bankruptcy for an estimated assets and liabilities between $1B and $10B on a consolidated basis.
This filing will hopefully allow customers who have been barred from withdrawlsto be able to re-access their funds.
Key Takeaways From The Week:
CPI - dark humor is helping many to cope - She’s a 9.1 but she’s probably going up (did we get that right?)
Precious Metals - gold, don’t drop below $1700… it could be a long way down after that
Commodities - high fuel costs + export sanctions = fertilizer crisis = famine fears
Tech - Musk might meet his match with Delaware judge in Twitter trial
Crypto - Celsius is filing for Bankruptcy providing hope for customers who had their funds frozen
That’s all for this week’s updates. If you enjoyed what we dug up for you, register for our newsletter through the subscribe button below and we’ll continue to drop golden nuggets of market info into your inbox.
The opinions shared in this newsletter are not intended to serve as investment advice, and are not to be used as the basis for any financial decisions, these are the opinions of the individuals mentioned in this newsletter as covered by the creators of the newsletter.
We cannot guarantee the accuracy of all the information shared above and advise you to do further research if you intend to use any of the above information in your financial decisions.