December 2022: Monthly Asset Class Report

Everything - except gold and silver - was down in December. [The Rude Awakening] January 03, 2023 [WEBSITE]( | [UNSUBSCRIBE]( December 2022: Monthly Asset Class Report - Everything - except gold and silver - was down in December. - Tax loss harvesting played an important role in the terrible month. - Equities, bonds, and real estate all got hammered. Gold was up nicely. [Fed Exposed! Former government insider tells ALL]( Secret plan to destroy the markets? This [former government insider]( just went on LIVE camera and exposed the Federal Reserve for what it REALLY is… An institution created in secret designed to rob you of your savings, and destroy your wealth. And even though we all know these central bankers have blood on their hands (inflation, the Greenspan bubble, Ben Bernanke)… No one, and I mean NO ONE expected [this.]( If what this insider says is correct, you may only have days to prepare. [Click here]( to see his shocking exposé. [Click Here To Learn More]( [Sean Ring] SEAN RING Happy 2023 on this rainy Tuesday morning in Asti! I hope Santa spoiled you and yours rotten for Christmas. And I hope you drank yourself silly over the New Year. Pam and I partied with the trusty old buck’s fizz (but with prosecco instead of champagne). Although the International Bartender’s Association considers them identical, today, a mimosa is usually made with champagne, orange juice, and Cointreau. A buck’s fizz leaves out the Cointreau, which I always forget to buy anyway! I thought of the substitution effect thanks to prosecco. A good DOCG (the highest appellation) prosecco from Valdobbiadene can be had for fifteen euros. I was strolling past an enoteca in town and saw a bottle of Taittinger on sale for eighty-four euros. Those champagne producers must be hurting! Likewise, investors can now choose between a 30-year bond yielding 3.85% and a stock that may have a 7% dividend yield and a capital loss! Will that drive investors into bonds? Not if inflation keeps up. It’s a genuine conundrum. This is part of the reason for gold’s resurgence. As gold is well over $1,800, a move to over $2,000 is attractive vis-à-vis other assets. Let’s see how December played out - and what we can forecast for January… S&P 500 [SJN] After an awful month (the last four red candles), we finished the year at 3,839.50. Most Wall Street analysts predicted the SPX would be up in the 5,000 area by year-end. Clearly, they had an off year. We’ve been holding steady between the 3,800-3,850 range. A break upward gets us to the 4,100 level. A likelier break downward takes us under 3,600. My call for 3,215 remains, but we’ll need a few more rate hikes to get there. Nasdaq Composite [SJN] December was awful for the tech space, and I suspect that will continue throughout Q1. The other case is that this may be a double bottom, and we’ll bounce to 11,500. That better be the case, because there’s not much between here and 7,500 in terms of technical support levels for the Nazzie. Russell 2000 (Small caps) [SJN] Though we had a down month, the Russell still deserves credit for holding up as well as it has. But it looks like we’ll test that $162.50 bottom again. If we lose that level, we head to $145. If not, it’s back up to $187. The US 10-Year Yield [SJN] In the last two weeks of the month, we rallied up to 3.88%. I don’t think we’re done, as Chairman Pow won’t stop hiking just yet. We’ll get back above 4%, on our way to 5%. Dollar Index [SJN] The dollar continued to get hammered throughout December. But with the ten-year yield heading up, along with the Fed’s overnight rate, we may see a turnaround soon. Good traders always ask, “What’s the worst thing that could happen?” A whipsaw in the USD is the answer. I’m weary of it. USG Bonds [SJN] Yup, it was a sucker’s rally. I hate bonds right now and still can’t think of a reason to own them. If the inflation story was over, Powell would’ve stopped hiking by now. And bonds hate inflation. Investment Grade Bonds [SJN] Again, another rally that’s run out of steam. We had a peep above the 200-day MA, but it was a false dawn. We’ll be back under $100 soon enough. High Yield Bonds [SJN] Junk has turned around as well, just not as much as investment grade and government bonds. I still think we’ll head down to $70 shortly. [[MEET]: The Man Who Beat 2022]( He’s a former hedge fund manager… With a loyal following of more than 100,000 American investors… Plus, he’s helped my readers close [one winning trade after another]( with gain like: - A 128% in 28 days … - A 174% in 11 days… - A 203% in 26 days… So… How are gains like these possible in today’s crazy market? How does this strategy work? And how can you get ready…before the next buy alert? [Go here now to get the answer from my #1 stock picker](. [Click Here To Learn More]( Real Estate [SJN] Real estate surrendered November’s gain in only a month. There’s nothing to get excited about in real estate with rates continuing upward. Back down to $75, I think. Base Metals: Copper [SJN] We barely moved in copper this month. The macro numbers look terrible, which skews my outlook to the downside. I bet we see $3.20 before we see $4.50. Precious Metals: Gold [SJN] Ok, it seems the market has finally cottoned on to the inflation story properly. This is the first time in a while I’m completely bullish on gold and it feels good. Next stop: $1,880. Then $2,000. Precious Metals: Silver [SJN] Silver indeed has come to life. We’re up another $2.50 this month. But the market is looking a little winded. Don’t be surprised if we pause here for a bit before resuming our uptrend. Above $25, we can be comfortably bullish. Cryptos: Bitcoin [SJN] From three months ago: BTC’s chart is broken. I just don’t see how it’s going to recover this cycle. I’m still thinking $10,000. Or below. BTC barely moved this month. I’d still stay away. Cryptos: Ether [SJN] ETH was down another $50 or so this month. Steer clear of the entire crypto ecosystem for now. Trad Asset Class Summary [SJN] Equities were up 5.81% in November. They were down 5.82% this month. Bonds were up 5.05% last month. They took a 2.82% hit this month. Commodities reversed their slight gains from last month. And the dollar took another hit of 1.36% this month. I think the market has finally cottoned on to the idea that Chairman Pow isn’t letting up yet. As a result, I think Q1 2023 will be dreadful. Crypto Class Summary [SJN] Crypto continues its abysmal performance. Monero was the prettiest girl in this ugly town, up a miserly 0.78%. Last month’s big winner, Litecoin, was down 12.42%. Dogecoin, Elon’s favorite, was crushed, down 32.74%. The heavyweights, BTC and ETH, didn’t perform too badly, considering. Wrap Up Silver and gold… silver and gold… indeed for December. But I expect the trend to continue into January and beyond. Equities will have a tough time, as will bonds and real estate. Here’s the Meme of the Month, courtesy of the Twitterverse: [SJN] Have a great week ahead! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. 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