Central Banks Increase Gold Holdings to Record Levels.
IMF Report On The Global Economy has Been Released.
Here is what we will be getting into today:
Central Banks' Gold Rush: Record High Purchases.
IMF Report Is Out, Anticipates Peaked Inflation and Robust Consumer Spending.
Solar Energy is Powering A Brighter Future.
Balancing Economic Indicators and Technical Signals in Stock Investing.
Let's Dive In!
Website: SchiffGold
Title: Central Bank Gold Reserves Chart Second-Highest Increase Since 1950 In 2022
Link: https://schiffgold.com/key-gold-news/central-bank-gold-reserves-chart-second-highest-increase-since-1950-in-2022/
Here are the key highlights:
Central banks around the world closed out 2022 with a record high of 1,136 tons of gold purchases. This was the second-highest level of net purchases on record, and the 13th consecutive year of net central bank gold buying.
China made large purchases in November and December, raising their total gold reserves to over 2,000 tons for the first time. The Central Bank of Turkey also made consistent purchases throughout the year, adding 150 tons to their hoard. The Reserve Bank of India resumed purchasing gold in December after a pause in November. Kazakhstan and Uzbekistan were partially offset by large sales.
Central banks have been buying gold to minimize exposure to the dollar and as a long-term store of value during times of crisis. Central banks around the world closed out 2022 with a bang, as reported net purchases of 28 tons of gold in December brought total central bank gold buying in 2022 to an impressive 1,136 tons – the second-highest level on record.
The World Gold Council notes two main drivers behind central bank gold buying:
Performance during times of crisis.
Role as a long-term store of value.
Given 2020’s geopolitical uncertainty and rampant inflation, it is hardly surprising that central banks opted to continue adding gold to their coffers at an accelerated pace this year. These big purchases underscore the fact that gold remains an important asset in the global monetary system even though it is no longer backing currencies anymore.
Website: ZeroHedge
Title: IMF Upgrades Global Growth Forecast As Inflation Cools
Link: https://www.zerohedge.com/economics/imf-upgrades-global-growth-forecast-inflation-cools
Here are the key highlights:
The International Monetary Fund (IMF) has released its latest World Economic Outlook, which paints a slightly less gloomy picture than what was anticipated three and a half months ago.
Inflation is expected to have peaked in 2022, and consumer spending remains robust. However, the global economy still faces major headwinds. The IMF predicts the slowdown to be less pronounced than previously anticipated, with global growth expected to fall from 3.4% to 2.9%.
The risks of the latest outlook remain tilted to the downside, as the war in Ukraine could further escalate, inflation continues to require tight monetary policies and Chinas recovery from Covid-19 disruptions remains fragile.
On the plus side, strong labor markets and solid wage growth could bolster consumer demand, while easing supply chain disruptions could help cool inflation and limit the need for more monetary tightening.
Newsletter: Noahpinion
Title: Repost: Why I'm so excited about solar and batteries.
Link: https://noahpinion.substack.com/p/repost-why-im-so-excited-about-solar
Here are the key highlights:
Solar power is one of the most important technologies of our time, yet it is often misunderstood. Solar power is not just about saving us from climate change; it is about giving us energy cheaper than we have ever had before. It is a clean, renewable source of energy that can help us reduce our dependence on fossil fuels. It is an essential part of the future of energy production.
The cost declines in solar and batteries are comprising a true technological revolution that has the potential to drive productivity growth. This is due to the fact that solar and wind are now cheaper than fossil fuels in many areas, and that the cost of electricity is expected to decrease as a result. Additionally, new advances in solar and battery technology mean that this revolution is far from over.
The benefits of this new source of cheaper, more plentiful energy are numerous. It has the potential to avert fresh water shortages, improve agriculture, and enable a variety of manufacturing industries to produce more with the same amount of labor.
In a world where energy is cheap and abundant, the benefits would be widespread and significant. Recycling, renovating buildings, cleaning up pollution, and all kinds of environmental work would become more affordable. Even the IT industry would benefit, since server farms would be able to do the world's computing cheaply and cleanly. Coupled with cheap, energy-dense batteries, even more possibilities open up.
With the right institutions in place to make sure the productivity gains are shared equally, energy tech could reduce the inequality evident in the world today.
Website: Real Investment Advice
Title: Recession Forecasts At Odds With Bullish Formations
Link: https://realinvestmentadvice.com/recession-forecasts-at-odds-with-bullish-formations/
Here are the key highlights:
The stock market is at odds with the mounting evidence of an impending recession, leaving investors in a predicament. On one hand, they don't want to miss out on a potential recovery. On the other hand, they don't want to suffer further losses in the equity markets.
The Conference Board's Leading Economic Index (LEI) points to a recession in the near future. The LEI has dropped sharply, indicating deteriorating conditions in the labor market, housing construction, and financial markets. However, the market has continued to rise despite falling earnings and weaker outlooks.
There are several bullish formations occurring that suggest higher prices in the short to intermediate term. The compression of prices between the downtrend line from the January 2022 peak and the rising lows since October suggests that a breakout is imminent. If prices do break out, it could lead to a powerful rally.
While there are reasons to be concerned about the market in the coming months, the improving technicals’ suggest that there could be a rally ahead. History shows that stock prices tend to bottom before earnings do, so it's possible that the market is predicting an eventual recovery.
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