Market futures are mixed today with the S&P and Dow down and the Nasdaq up. Treasuries mixed with the 10-year treasury almost flat. Oil is up and natural gas is down. Bitcoin is sitting at $39k.
The market is cooling off a little bit because it is running hot into the Summer. There are several things going on that should be concerning in the long run, but isn't that always the case? Today, Biden is meeting with Vladimir Putin and I don't think we have to wonder how Putin thinks about our President. He most likely perceives him as weak and fragile.
Important things are on the table in Europe like the building of a giant pipeline that will make western Europe dependent on Russian gas. Meanwhile, the US was the number one producer of Natural Gas in the world, but our allies decided to go with Russia to spite Donald Trump. Trump is gone but Germany still doesn't want our gas and Biden already waived sanctions on the company that is building the Nord Stream pipeline that delivers natural gas from Russia to Germany. At the same time, Biden is banning all drilling on US federal lands, America's energy superiority will be diminished within a year.
Crypto is not looking too hot right now. Bitcoin (BTC) is up nicely for the week but is hitting another road bump. These types of patterns are discouraging for some investors and money-losing for some institutions which is why this is not the time for a breakout. You can never know about crypto as a whole, but with Bitcoin, it seems that we are in a bounce that may or may not break out. Accumulating in the downturns still seems to be a valid strategy.
If the market reacts to the Biden/Putin summit it will likely not be a good one, but underlying economic conditions still prove to be supportive of the boom. We will be watching.
Thanks for reading,
The Punkrock Capitalist
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