There is a severe correction in cryptocurrencies underway, which is great news for stocks, since some cryptocurrency investors are expected to shift to gold. fell below $100,000 for the first time since mid-June and is now down 20% from its record high of $126,272.62 on October 6th. Ironically, as the ability to sell cryptocurrencies becomes easier via Robinhood and other platforms, the selling pressure may persist.
Speaking of gold stocks, here are the ones I recommend: Agnico Eagle Mines (AEM), Alamos Gold (AGI), Coeur Mining (CDE), Caledonia Mining (CMCL), Eldorado Gold (EGO), Idaho Strategic Resources (IDR), Kinross Gold (KGC), New Gold (NGD), OR Royalties (OR), and SSR Mining (SSRM).
COP 30 in Brazil was a bust. The U.S. was not in attendance, and the Trump Administration’s rejection of the Paris Climate Accord and a Net Zero goal by 2050 is effectively undermining the climate conference. Furthermore, since green energy is much more expensive than fossil fuels and is hindering Britain, Germany, and other major economies, the goal of lowering carbon emissions was severely watered down in the COP statement. The European Union dominated the COP conference.
The irony of having COP 30 in Brazil was obviously an insult to the Net Zero movement. Brazil is not in compliance with any COP mandates and continues to deforest the Amazon, since after clearing trees, the soil nutrients decay within four years, so more land needs to be cleared in the Amazon.
Back in the U.S., the Fed needs to keep cutting key to stimulate the job market. announced on Wednesday that 42,000 private payroll jobs were created in October, which was better than economists’ consensus estimate of 30,000. This was the first monthly increase in the private sector job creation in three months. Nela Richardson, the chief economist at ADP, said, “The recovery (in hiring) is tepid and not broad-based.”
Another reason that the Fed needs to continue to cut key interest rates is that the Institute of Supply Management (ISM) announced that its declined to 48.7 in October, down from 49.1 in September. This is the eighth consecutive month that the ISM manufacturing index has been below 50, which signals a contraction. The Production component slipped to 48.2 in October, down from 51 in September. The New Orders, New Export Orders, Backlog of Orders, and Customers’ Inventories components all improved in October, but all remained below 50, which is not a good sign. Overall, only 6 of the 18 industries that ISM surveyed reported an expansion in October.
ISM also announced that its rose to 52.4 in October, up from 50 in September. The business activity component surged to 54.3 in October, up from 49.9 in September. Also encouraging is the new orders component soared to 56.2 in October, up from 50.4 in September. Fully, 11 of the 17 service industries surveyed reported an expansion in October, up from 10 industries in September.