Equities are trying to bounce...again. Crude oil is higher as well.
On the flip side, gold and silver are lower, while Treasuries and the dollar are flat.
Meanwhile, let’s talk about the economy for a minute. The worst possible data combination is 1) Slower growth and 2) Higher inflation. Unfortunately, that’s what we got with this morning’s Q4 2022 GDP figures.
The economy grew just 2.7%, below the 2.9% average estimate. At the same time, the core PCE inflation reading came in at +4.3%. That was higher than the +3.9% estimate. Wall Street doesn’t like this kind of data, and neither does the Federal Reserve.
Meanwhile, the U.S. is boosting its troop presence in Taiwan to help train the island’s military. Some 100-200 troops will be deployed there before long, up from only 30 in the recent past. Geopolitical concerns will rise further in response, especially because this news follows reports of China and Russia developing closer military ties.
In the energy patch, natural gas prices have tanked by two-thirds in the last two months. The catalyst? A complete lack of that thing we call “winter.” We’ll likely see drilling activity drop in the next couple of quarters as producers try to avoid adding to already bloated supplies.
Finally, shares of the closely watched semiconductor company Nvidia (NVDA) are surging after the company beat Q4 earnings targets. Many analysts view the company as a way to profit from the AI computing boom. After all, NVDA’s chips help power the hardware behind tools like ChatGPT.
Please Note: There will be no MoneyShow Expert Interview Series video this week because I was in New York City hosting our Global Portfolio Strategy Summit. Look for your next video interview next week.
