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Monday, November 29, 2021
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US Inflation Boosting Precious Metals, Stocks and Cryptocurrencies

#inflation #prices #metals #stocks #crypto #economy #politics #DeFi #insurance #meme

$GLD $XAU $SLV $XAG $DXY $SPY $QQQ $RUT $DIA $VXX $ETHUSD $BTCUSD $GBITS

After months of hearing how inflation is transitory, it is becoming clear to just about everyone that inflation is anything but transitory, and is here to stay“–Paul Ebeling

The latest inflation data showed that prices rose nearly 1% month to month, and over 6% year on year. That is the highest inflation rate in decades, and it is not the end of rising inflation.

Markets are responding Bullishly.

As you might expect, gold and silver saw significant price growth in the immediate aftermath of the CPI announcement. That is an indicator that markets are becoming aware of the reality of rising inflation and of the role that gold and silver can play as an inflation hedge.

At this point there is no telling how high prices will rise and how long we will see inflation spiraling Northward.

Gold futures settled $15.60 higher (+0.8%) at $1,863.90/oz, marking a 6th-straight gainer, and the US Dollar Index is up about +0.3% at $95.14

Stocks

S&P 500 closed flat to little changed in quiet session

DJIA -158.71 at 35921.23, NAS Comp +81.58 at 15704.28, S&P 500 +2.56 at 4649.27

The S&P 500 increased 0.1% Thursday in a tight-ranged session. The NAS Comp (+0.5%) and Russell 2000 (+0.8%) outperformed the benchmark index while the DJIA fell 0.4%. 

  • S&P 500 +23.8% YTD
  • NAS Comp +21.9% YTD
  • Russell 2000 +22.0% YTD
  • DJIA +17.4% YTD

The Memes

Online insurance company Root Inc. (NASDAQ:ROOT) reported Q-3 results after markets close Wednesday. Even though the company missed badly on profit estimates, its revenue was up almost 86% year over year and beat the Street estimates. Social media comments were running high on the company, and many seem to think a short squeeze is in order.

Root traded up 28%, at $5.78 in a 52-wk range of $4.60 to $25.63 on volume of 53.3-M/shares.

Decentralized finance firm SoFi Technologies Inc. (NASDAQ:SOFI) has added about 11% to its share price over the past month. Then it reported Quarterly earnings after markets closed Wednesday and the shares traded up by around 20% early Thursday morning. The company did not comment in its report on progress toward getting a bank charter but raised guidance for FY 2021 for both revenue and adjusted EBITD.

Shares of SoFi were up 12.50% at $22.97 at the close Thursday. The stock’s 52-wk range is $11.80 – 28.26, and the volume was at 71.2-Mshares. 

On the Crypto front

Ethereum has played 2nd fiddle to Bitcoin, but there are lots of reasons to be excited about its future. With experts across the fintech landscape expecting big things from the cryptocurrency in the coming months and yrs, so…

The Big Q: Will ETH finally turn the tables on BTC?

The Big A: According to a Finder report consisting of 50 fintech specialists, ETH is expected to reach a value of $5,114 by the end of Y 2021. The findings from the Ethereum price predictions report forecast the average price expectancy of ETH over the rest of Ys 2021, 2025 and 2030.

Although a value of $5,114 seems to be a significant leap from its current price of around $4,000, it pales in significance compared to Y 2025, in which experts anticipate a price of around $15,364 per coin. The cost of Ethereum by Y 2030 is even more mind-boggling, with $50,788 expected to be reached by the end of the decade.

Finder’s data also suggests that 63% of panelists believe now is a good time to buy Ether, while just 9% feel as though it is worth selling. Aside from the topic of buying and selling, 28% of those surveyed believe it’s time to ‘hodl.’

GBITS continues it march North with $400/each in clear view, currently it is trading at $381.79836 having marked $391.10 earlier in the day.

The US economy

Looking Ahead: Investors will receive the preliminary University of Michigan Index of Consumer Sentiment for November and the JOLTS – Job Opening report for September Friday.

Politics

  • Mark Meadows said the 13 GOP infrastructure-bill supporters should lose their committee assignments.
  • Trump’s former Chief of Staff said the bill would “clear the way for more socialist spending.”
  • He also said Kevin McCarthy’s team should have more effectively whipped the caucus against the bill.

Have a prosperous day, Keep the Faith!





Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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