To The Moon

My investing muse

Energy seems to be the winning sector for 2022. With the coming recession, we can expect consumption (and likewise the revenue) to drop. Thus, it would be good to consider taking profits. With diesel and natural gas prices falling, this could be due to demand erosion. This recession could affect all sectors although energy would continue to be a “popular” (and staple) sector. Thus far, winter does not look as bad as feared but the coming earnings could advise on the market outlook. I prefer to stay away from the “hot” sector to avoid being left behind as bagholders.

Despite the concerns about the recession, let us look out for great opportunities, new innovations. Artificial Intelligence (AI) is causing quite some stir with companies like ChatGPT gaining much interest in the market. Concerns about data privacy, the authenticity of content, data security and more have been raised. Hopefully, the regulations can step up before we run into various brick walls with the development. Ideally, the regulators and market need to work together to best advance their causes together. It is not about curbing innovation but rather protecting the market and ensuring that loopholes and communities were not exploited by unfair & unethical practices.

The world looks to be more divided. With countries choosing trade barriers over cooperation, different trading blocs are forming. The US seems to push OPEC (and the Middle East especially) into the arms of China with talks of RMB used instead of USD. The power of USD being a world reserve currency is under siege. The US will need to do more to unite the world instead of splitting the world with its policies.

The tech layoffs point to businesses getting leaner to prepare for the coming recession. The coming earnings will shed some light on the market outlook. The US Congress has just passed the “Omnibus” bill totalling about USD$1.65 trillion. The debt ceiling should be hit soon and we can expect more drama in the coming weeks.

2023 is not the year to consider big expenditures. Let us review our income and expenditure, spend within our means, avoid leverage and invest with what we can afford to lose.

@TigerStars

$Energy Select Sector SPDR Fund(XLE)$ $Microsoft(MSFT)$ $ETFS WTI CRUDE OIL(CRUD.UK)$