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- 💳 Are Credit Card Delinquencies Predicting a Recession?
💳 Are Credit Card Delinquencies Predicting a Recession?
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This week has been flooded with FUD (fear, uncertainty, and doubt)…
Along with incorrect assumptions about new crypto report laws.
And many doom-and-gloomers are saying credit card debt is about to crush the economy.
But what’s the reality?
Today we’re diving into this and more!
Chart of the Day: Uranium 📈
Credit Card Delinquencies: The Good, The Bad, And The Normal 💳
4 Proven Ways to Make Money in Crypto 💰
The Truth About Crypto IRS Reporting For $10,000+ 📺
Today’s newsletter is a 4 minute read.
Chart of the Day: Uranium 📈
We love a super bullish chart, especially when we’ve got some skin in the game!
So we’re pretty thrilled with how things have been trending for Uranium futures lately:
Uranium futures 5-year chart
The powerful yellow metal that powers nuclear reactors has risen almost 100% in the past year and about 60% since we profiled it here in the Daily Dough last August.
Could it be overheated?
It’s definitely possible, but most investors are still unaware of this micro bull market.
Uranium prices are also still about 35% from their all time highs made way back in 2007.
Additionally, many of the same supply & demand factors still apply to the sector:
Limited incremental mining capacity coming online
Production constraints at older mines
Financial demand from uranium funds run by Sprott, Zuri, and Yellow Cake PLC
Geopolitical tensions in some mining regions
The physical uranium trusts ARE starting to trade at 5-10% discounts to their net asset value (NAV), as some investors expect prices to take a breather.
However, these trusts haven’t traded at massive premiums to NAV either, which is what we typically see in an overheated parabolic bull run.
So for now it looks like the Uranium bull market is intact and we’re excited to see how high it can go!
Credit Card Delinquencies:
The Good, The Bad, And The Normal 💳
Who is the most important person that holds an economy up? The consumer.
We live in a world full of major corporations trying to get you to spend money. That money helps keep people employed and businesses running smoothly (for better or worse).
So, it’s no wonder we’ve been hyper-focused on every move the consumer has been making and how their financial lives look.
Something that gives us insight into consumers is credit card delinquency rates and what percentage of debt banks are having to “charge-off” as unpaid debts.
This graphic from Seeking Alpha breaks down these rates per bank:
While we should be concerned about delinquency and charge-off rates growing above pre-pandemic levels for multiple banks, it’s obvious not every bank is seeing this unraveling happen.
Some banks are also seeing these rates rise less than others.
It’s something we’re keeping a close eye on.
All of this said, consumer debt as a percentage of disposable income is still at manageable levels (back to pre-pandemic levels):
Bankruptcies are still way lower than pre-pandemic levels as well:
So, with unemployment rates staying low, the hope is that it can keep people employed, and keep delinquency rates from rising further at the banks seeing increases.
This will lead us to the “soft landing” of the economy.
It goes back to the “goldilocks” environment. It’s not great, it’s not bad, it’s just okay.
But… earnings season is approaching, and it will tell us a lot about how much spending power the consumer REALLY had in the ever important holiday season.
4 Proven Ways to Make Money in Crypto 💰
In the whirlwind world of crypto, fortunes are both made and lost in the blink of an eye.
It's a high-stakes game where the bold reap rewards, while the unprepared face harsh setbacks.
For those daring enough to dive in, here are four strategies that could carve your path to crypto success.
The Steady Approach: HODLing
For many, the mantra is simple: buy and hold.
This strategy typically involves heavyweight players like Bitcoin and Ethereum.
Historically, they've outperformed most assets, offering a less stressful yet potentially profitable way to engage with crypto.
Swing Trading: The Chart Whisperer's Dream
If dissecting graphs and decoding market trends is your forte, swing trading might be your golden ticket.
This technique involves holding a crypto asset for a few weeks or months, aiming for higher returns than the traditional buy-and-hold method.
It's a game of precision and timing, perfect for those with an eye for technical analysis.
Altcoin Accumulation in the Bear's Lair
Here's where boldness meets strategy: purchasing emerging or significantly dropped cryptocurrencies during bear markets, and selling them off in the frenzy of bull runs.
While many crypto assets might plummet to zero over time, this approach bets on striking gold with early investments in promising projects.
It demands deep research, unwavering conviction, and the skill of timing.
The Wild West of JPEGS & Memecoins
Venture into the realm of Ethereum NFTs or Bitcoin Ordinals, and you'll find a world brimming with potential... and pitfalls.
This niche focuses on trading digital art or utility-driven assets.
But beware, liquidity is a luxury here, and you might find yourself stuck with valueless digital collectibles.
On the other end of the spectrum lies the high-risk universe of memecoins. These fleeting fads mostly crash and burn, but the savvy few who can spot that rare gem amidst the rubble can reap outsized rewards.
It's a risky play, suited only for those with a talent for spotting the exceptional in a sea of mediocrity.
In crypto, the only constant is change, and these four strategies offer a glimpse into the myriad ways to navigate its turbulent waters.
Choose your path wisely, for in this digital odyssey, fortune favors the brave... and the well-prepared.
📺 Video of the Day: The Truth About Crypto IRS Reporting For $10,000+
Hysterics broke out on Twitter when accounts started posting that every crypto transaction over $10,000 would have to be reported to the IRS.
A new portion of Biden's Infrastructure bill that was passed in 2021 goes into effect in 2024. But... it's not what people seem to think it is!
Crypto traders are now wondering if this applies to them.
I break down the TRUTH behind the new crypto reporting law, who it applies to, who it doesn't apply to, and more.
Food For Thought 🧠
"It’s not always that we need to do more
but rather that we need to focus on less.”
- Nathan W. Morris
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DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.