Lobo Tiggre: Uranium is My Focus Right Now, Everything Else is Wait and See

TL;DR

The Federal Reserve has raised interest rates by 25 basis points, as anticipated. The discussion focuses on the potential impact of this decision on investments in gold and uranium.

Transcript

thank you I'm Charlotte McLeod with investingnews.com and here today with me is lobo Tigre editor of independent speculator.com thank you so much for joining me great to see you happy to be back with you Shaw always nice to meet sitting with you and today as we were talking about just now is bad day so this is probably where we should start they hi... Read More

Key Insights

• ☠️ The interest rate hike was expected and does not deviate from market predictions.
• 🏣 The focus is on the post-hike communications from the Federal Reserve Chair and their impact on the markets.
• 🥺 The speaker believes that the Fed's tightening policy is causing economic damage and may lead to a recession.
• 🙈 The concept of "Team Soft Landing" is discussed skeptically, as the speaker sees evidence of ongoing damage to the economy.
• 😀 Gold may face bearish conditions in the near term due to confidence in a soft landing scenario and the absence of safe haven demand.
• 🥹 The prospects of a gold-backed BRICS currency are uncertain, with contradictory statements from different countries.

Questions & Answers

Q: How does the interest rate hike align with market expectations?

The rate hike was in line with market predictions, with a high likelihood of 98.6%. Deviating from this decision would have been surprising for the market participants.

Q: What is the impact of the Federal Reserve's tightening policy?

The speaker believes that the Fed's aggressive tightening policy is causing damage to the economy, and a recession may be imminent. While there may be supporters of a soft landing scenario, the speaker is skeptical about its feasibility.

Q: Will gold face bearish conditions in the near term?

Yes, the speaker suggests that gold may face bearish conditions in the near term due to the confidence in a soft landing scenario. The absence of safe haven demand and the lack of interest rate competitiveness act as headwinds for gold.

Q: What are the prospects for a gold-backed BRICS currency?

The chances of a gold-backed BRICS currency being announced at the upcoming meeting are uncertain. Russia has stated there will be an announcement, but India and South Africa have expressed contradictory views. The speaker believes that while a gold-backed BRICS currency may eventually happen, it is not relevant to investment decisions at present.

Summary & Key Takeaways

• The interest rate hike was widely expected and aligns with market predictions.

• The focus is not on the rate hike itself, but on how the Federal Reserve Chair, Jerome Powell, communicates their plans after the decision.

• The speaker believes that the Fed's tightening policy is causing damage to the economy, and a recession may be on the horizon.

• The concept of "Team Soft Landing," investors who believe the economy will smoothly transition to a new growth phase, is discussed but viewed skeptically.

• The speaker suggests that in the near term, gold may face bearish conditions due to the confidence in a soft landing scenario.

• The launch of a potential gold-backed BRICS currency is also discussed, with caution and skepticism expressed regarding its likelihood and impact on investments.

• The focus is narrowed down to uranium as the speaker's preferred investment, due to the positive market conditions and potential supply deficits.