BITO - Mission Accomplished?
2024-06-07 13:45:00 ET
Summary
- The two primary drivers of the market these days are news related to inflation and developments in artificial intelligence.
- The hope for the Fed to cut rates these past several months has supported equity values and suppressed rates since November.
- Precious metals and Bitcoin have increased as the narrative has shifted, with rate hikes unlikely and the Fed slowing down the balance sheet runoff.
By Ryan J. Puplava, CMT®, CTS™, CES™
The two primary drivers of the market these days are news related to inflation and developments in artificial intelligence ((AI)). Inflation is particularly significant because it influences the Federal Reserve's monetary policy decisions. The Fed is prioritizing inflation control over unemployment and economic growth. Additionally, with it being an election year, fiscal policy from the government is expected to remain loose, further fueling inflationary pressures. These monetary policies, whether restrictive or loose, in turn, affect the prices of precious metals and bitcoin....
Mission Accomplished?