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So where do bio go for safety and profits after Powell’s speech: First take is farm commodities

So where do bio go for safety and profits after Powell’s speech: First take is farm commodities

Pretty much everything got clobbered today after Federal Reserve chair Jerome Powell promised that the Fed would raise interest rates and keep them high until inflation is under control. In other words, no quick turn to cutting interest rates in the second half of 2023. So chip stocks were down today, August 26, with Nvidia (NVDA) plunging 9.23% at the close. Consumer stocks were down with Shake Shack (SHAK) tumbling 8.61%. Financial technology stocks were down with Block (SQ) shedding 7.72%. Climate change stocks, an extremely hot sector lately, were down with EVgo (EVGO) bleeding 7.86%. Hide in gold? No way. The SPDR Gold Shares ETF (GLD) was down 1.22%. (Better than a poke in the eye with a sharp stick, I suppose.) But agricultural commodity ETFs? Green in a sea of red.

Please Watch My YouTube Video: Trend of the Week Hedging With Commodities Lives

Please Watch My YouTube Video: Trend of the Week Hedging With Commodities Lives

My one-hundred-and-fifty-ninth YouTube video “Trend of the Week Hedging with Commodities Lives” went up today. The strong dollar has knocked commodity plays around. But the reasons for buying these hedges still hold. Inflation. Supply shortages (especially in agricultural commodities.) I think there’s still a strong case that commodities are a good way to hedge this market.

Bad day for consumer stocks; good day for commodity shares

Bad day for consumer stocks; good day for commodity shares

The Conference Board’s latest reading on consumer confidence showed consumer expectations in June fell to their lowest level since 2013. The consumer confidence index for June fell to 98.7 from 103.2 in May, below expectations for a reading of 100. The report’s expectations index, which is based on consumers’ short-term outlook for income growth, the job market, and overall business conditions, fell to 66.4, its lowest reading since March 2013.