Tariff Noise Loud Again
1. Over the last week, we learned all about how U.S. is going to be imposing tariffs on copper.
Then, over the weekend we heard about how Europe is getting slapped with tariffs too starting August 1st.
Mind you: Canada was also being told 35% tariffs starting August 1st.
Mexico too.
You see, this noise of tariffs just creates havoc, and uncertainty. Tariffs can be managed, but random numbers being thrown just hurts the sentiment.
The Last Time Tariffs Nosie Got Louder…
2. The last time tariff noise got louder was between February and April.
During this time, the stock market tanked.
Now, as tariff noise is getting louder, will markets tank again?
I think there’s definitely going to be some volatility, but we also know Trump administration has been folding on bunch of things. They did fold/gave extensions, I think market knows that and there might not be tank like February and April. However, too early to tell at the moment.
Silver Finally Breaking Higher?
3. Silver: getting closer to $40. If you look at charts and nothing else, there’s a breakout at play. Let’s see if it holds above $37.50 though (in case it gets retested).
Oil: trying to make a run for $70.00, but there’s a lot of resistance. What could really cause a spike in oil at this point? It has to be some sort of Black Swan event. I say this because even threat of Hormuz closing didn’t event take it higher.
Copper: U.S. putting 50% tariffs on copper imports is a pretty dumb idea in my opinion. Surely will be great for local producers, but it is going to hurt those who need it. Let’s see.
Bitcoin Crosses $120,000
4. Over the past couple of months as there was a serious consolidation, I kept saying a move above $110k would take bitcoin to $120k very quickly.
Well, we just witnessed that.
As I write this, bitcoin trades close to $122k. And, as I just searched for “bitcoin prediction” on Google, I am seeing 200k-300k by Christmas. Not surprised as that’s how it usually goes. Matter of time $1 million prediction headlines show up.
If you are new to crypto, just know what you own. Swings are wild here, and there is a lot of garbage out there, and it floats when there’s so much buzz.
Inflation Data
5. While today, there isn’t much economic data out of Canda and the U.S., but tomorrow should be interesting. We get Canadian and U.S. CPI. Aka Consumer inflation numbers.
Canadian CPI is expected to be around 2.7-3.0%, while U.S. CPI is expected to be around 2.6%.
Keep in mind: Bank of Canda’s mandate is inflation.
Also keep in mind: President Trump is trying to strongarm the Fed into cutting rates because “inflation is controlled” and rates are too high when the U.S. is doing great.