Rate Hikes and Gold's Momentum

Since last week: The day finally came when the Fed had to hike rates, and the market reacted accordingly.

1. Rate Hike Fallout

Traders are digesting the Federal Reserve’s first rate hike in three years. The market also continues to be influenced by continued Middle East tensions, though peace talks are once again supposed to take place in the near future. This is a market that will continue to be mired in uncertainty, but there are strategies you can follow to sidestep the worst of it. Click here to learn more about how to do that.  

2. Gold and Silver Bounce

Gold and silver responded to the rate hike news first by falling then by recovering as oil and bond yields eased. The worsening debt crisis all but ensures that these commodities will continue on a positive trajectory in the near future. Click here to learn more about the best ways to profit from the trend.

3. Clarity Act Failure

The Clarity Act, a piece of legislation that would have fostered a friendlier environment for cryptocurrency, failed to advance in the Senate before its recess this week. While that proves to be a stumbling block for the industry, it doesn’t necessarily mean the act is dead or that something like it couldn’t emerge in the near future. Bitcoin traders seem to be taking the news in stride, as many still see a bright future ahead. Click here to learn some insight about what the future looks like for crypto investors. 

4. Data Centers and Power

One of the biggest talking points in widespread data center construction is the cost of electricity and how it’s largely being passed on to the communities in which these data centers are being built. A recent House bill, called the Ratepayer Protection Act, passed in an attempt to address the issue, and that brought renewed focus on the sources of electricity behind these data centers. Many know that one of the most efficient, cost-effective ways to power data centers is nuclear power and legislation like this will bring that fact to the mainstream. Click here to learn how you can buy into the fuel behind nuclear energy before more people learn about its profit potential.

What to Look For

Chairman Warsh did not rule out further rate hikes throughout the rest of the year, and that’s something that could inform the actions traders take over the course of the rest of the year.

Keep your eyes open,

Ryan Stancil

Ryan Stancil
Editor, Bizarro World