Happy Friday the 13th!!
If you live and work in the United States and didnít get a raise of 2.9% this year, youíre actually making less than you did last year.
The CPI data released yesterday showed a rather nasty increase bringing therate of inflationto just under 3%.
Unfortunately for American workers, the average hourly earnings that were published a week ago showed a growth of only 2.7%.
That means that all the increases Americanís received in their salaries over the last year have beencompletelywipedout by inflation.
So, is the US economy really doing great?
eToro, Senior Market Analyst
Stocks are Fearless
Running out of Gold
New Crypto Billionaire
Please note: All data, figures & graphs are valid as of July 13th. All trading carries risk. Only risk capital you can afford to lose.
US Treasury Secretary Steven Mnuchin was againplaying downthe trade war:
Perhaps with Trump out of town at the moment, Steven may even get away with this remark. Of course, if Trump or any other White House official decides to downplay Mnuchinís remarks, it wouldnít be the first time.
Speaking of contradictions, it seems thereísa bitofdivergencebetween what world leaders have understood from the recent Nato Summit.
Regardless of all the above,the markets are having agreen daywith most stock indices showing gains. Outperforming by far is the Nikkei 225 in Japan, which is up 1.79% today. Despite a sizable gap down on Wednesday morning, itís having a fantastic week.
TheNasdaqis at a new all-time high and while [email protected] strategy didnít outperform in the last few days, itís still sitting pretty.
The metals slide continues. If youíve been reading diligently over the last week, youíll know that Iíve beenlooking for an explanationfor this.
Yesterday, one finally approached me and the answer was a lot closer to home than I expected. My esteemed colleague and regional manager of eToroís Arabic department, George Naddaf, explains that due to outstanding tariffs which specifically target the metal markets, global suppliers are being forced to adjust their prices to meet the current demand.
Still, the tariffs imposed were specifically on steel and aluminum at a rate of 25% and 10% respectively. I get that the industrial metals are taking a hit and that the sectors are correlated but this doesnít quite explain why precious metals like gold is down 9%, silver is down 8.8%, and platinum is down 12.8% from their respective peaks in mid-April.
My feeling is that there might be a case to consider adding some of these assets, especially if the trade dispute is in fact about to end.
New Crypto Billionaire
Some people are billionaires because they hodled crypto and some people hodl crypto because theyíre already billionaires.
Steven Cohen is definitely in thesecond group. The details of his investment were supposed to remain private but it does seem that they were leaked.
Nobody really needs to ask Cohen why heís interested in crypto. That much is clear. The interest in this new asset class is through the roof, but only just recently is it starting to catch the imagination of the already wealthy.
Cryptos are up today led by Dash, which has risen 6.5%. As we discussed in ourin-depth research paper, Dash is one of the most well-established cryptocurrencies and is making significant moves on the ground, especially in the emerging markets where it is needed most.
However, in a strange way, the market has been preferring more experimental and ďunder-constructionĒ cryptos that are less established.
Here, take a look at this graph of the last year. Dash is actually below the price it was trading in September. This really makes no sense, when other cryptos have made significant gains in this same period.
Wishing you a safe and pleasant weekend!
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The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.
Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.
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