Our Prediction for When the Fed Will Initiate Rate Cuts
Published: 12/9/2023
Author: Sid Rajeev, B.Tech, CFA, MBA
Summary
Factors behind the recent surge in equity markets
Our forecast for when the Federal Reserve will initiate rate cuts
An encouraging development for gold-silver juniors
Last week, a lithium junior under coverage announced a promising maiden resource estimate. However, but the market has yet to factor in the impact of this announcement on the company’s stock.
Positive results from a biotech company under coverage with potential treatment for heart diseases
FRC Top Picks
The following table shows last week’s top five performers among our Top Picks, including four junior resource companies, and an oilfield services company. The top performer, Transition Metals (TSXV: XTM), was up 18.2%. XTM is a prosect generator, with properties in renowned mining districts in Thunder Bay, Yukon, and Saskatchewan. Our prior reports can be viewed here.
Weekly Mining Commentary
Last week, global equity markets were up 3.3% on average (down 0.6% in the previous week), gold and silver prices were down 1.0% on average (up 1.2% in the previous week), and the US$ was down 1.0% (up 0.4% in the previous week). Equity markets surged amid cooling inflation in Europe, and weaker than expected U.S. jobs data. The U.S. unemployment rate increased in October, suggesting that the Fed could start slashing rates within the next six months. We continue to believe that equity markets remain highly vulnerable and could face downward pressure, while gold/silver could see material gains, amid a high probability of escalating geopolitical tensions in the Middle East.
