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Oil Looking Very Bullish. U.S. Economy, Not so Much!J Taylor's Weekly Hotline Index, September 8, 2023
Crude Oil WTI Oct '23 Perhaps I should include crude oil in my Key Market Metrics as a stand-alone item since it is so crucial to the global economy and financial markets as well. The Rogers Raw Material Fund is heavily weighted in oil, gas, and coal so it’s not as if its impact isn’t present in my Key Market Metrics. But given the geopolitical impact of the Biden Administration trashing oil production in the U.S. this week, for example, oil is becoming ever more of a negative in U.S. markets. Remember that almost everything you buy has energy costs built into it either as part of the product itself or transportation costs from producer to market and final consumer. J Taylor's Gold Energy & Tech Stocks is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. Last week, the price of oil soared to much higher levels after Saudia Arabia and Russia agreed to extend production cuts. I can’t emphasize enough the importance of the BRICS using economics to fight against U.S. hegemony. Whereas in the past the U.S. had a working relationship with Saudi Arabia, that key oil producer has turned against the U.S. during the Biden presidency. Rather than underpinning the value of the dollar, Saudi Arabia has now joined the BRICS, which now also includes Iran and the United Arab Emirates to essentially lock up the oil markets at the same time that Biden is doing all he can to restrict oil and gas production in the U.S. So, rising oil prices are once again putting upward pressuring on inflation in the U.S. at the same time that the lag effect of rising rates is starting to put downward pressure on economic activity. Consumers are now reaching maximum credit despite rising inflation by charging their credit cards to the hilt and paying usurious interest rates. Today on Fox Business, Charles Payne for example noted that Macy’s is charging 34% on unpaid balances! Now with gas prices starting to rise, masses of lower income earners will find their ability to finance life’s necessities will be squeezed even harder. The wheels on the U.S. economic wagon are bound to fall off sooner or later when higher rates in light of an ever-increasing number of personal and corporate bankruptcies demand QE. That’s when I expect the gold and gold share markets will finally have their day. Underlying the impending recession/depression are rising oil prices caused by insane anti-growth policies of the Biden Administration, which is taking its marching orders from fascist Klaus Schwab and the World Economic Forum. But while we wait for gold and gold shares to wake up, I see a great opportunity to profit from rising oil prices, which is why last week I more than doubled my holding of ExxonMobil. I purchased Goliath Resources after the phenomenal report of the company hitting a major feeder zone, as discussed on page 11 in this issue. I also built cash a bit this week as well. To enable those moves, I temporarily sold Eloro, i-80, and SilverCrest, not because I have soured on any of them but because in the case of Eloro and SilverCrest I feel downward pressure on silver will keep these shares subdued while I believe there is explosive upside potential for Goliath Resources. Quinton Hennigh said on Friday that while Goliath looked exceptionally good before this week, the news this week should be a “game changer” for the company. I don’t see an imminent move for i-80 but love that story as much as ever. And oh, by the way, another stock with explosive upside discussed in this issue is Founders Metals (page 14), which thankfully now has a U.S. trading symbol (FDMIF). Before it had a U.S. symbol, I personally purchased it through an account I have in Canada. You MUST keep an eye on Founders Metals! This Week’s Hotline Index Be sure to subscribe so you can be up to date on the latest gold and silver assays that are leading to some new world class discoveries. Best Wishes, Jay Taylor J Taylor's Gold Energy & Tech Stocks is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. You're currently a free subscriber to J Taylor's Gold Energy & Tech Stocks. For the full experience, upgrade your subscription.
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