The Bounce in Closing Out July, 2022

 

It's the end of July, 2022 and when I would like to fast forward to the cooler Fall amid high humidity hear waves here on the East Coast of Canada but it will come fast enough. 

What's happening in the Markets now? Reading the news, it's full of speculation and forecasting based on past history fluctuations but it looks like there is a sense that some investors feel we've bounced off the "Bottom" of the crash that started back in mid April. 

I'm seeing more "green" in indexes like the Canadian TSX, which is a good sign for now but it's anyone's guess if the Markets (depending on sectors) will continue to move up gradually and depends on a lot of factors as usual. 

One of the primary factors is the Feds and are they getting control of inflation with interest rate hikes and will these hikes slow down in the near future? No way of calling that yet. Some feel they are getting a grip on high inflation although I don't see it in the Shops where things cost even more this week.

Although I live in Canada, the commodity scene is influenced by international supply and demand. Oil and natural gas are up because of the Russian/Ukraine war. China with it's changing intake quota on imports from Canada, metals like iron, etc. and now tensions are up with China wanting to convert Taiwan to fall under communist rule while the US disagrees with that move. 

By staying invested through the bad and good times, the above doesn't matter much to me although I stay informed where the stocks I buy go on sale during down times.

In August, my interest is in adding to oil/pipelines and insurance with Enbridge (ENB) and Manulife (MFC) going ex-dividend and both being holdings in the BTSX strategy.

The highly volatile crypto scene made a recovery this month with some of the negative feedback/fear falling to the wayside as Bitcoin and Ether make gains in price so far. Stats show the number of folks holding less than 1 Bitcoin is growing once again.

Always something to watch for is what Miners are doing with their Bitcoin and their overall selling of BTC (they planned to hold for long term) to pay for expenses is slowing after Bitcoin began moving up from 18 grand USD to around the 24 grand level for now. Those that are big into stats, believe this is a positive thing and possibly generate more BTC buying. 

It's something like the oil business. Companies are into larger cash gains now as oil stays in the price price range it currently has these past months and can go down to $70 a barrel USD but falling below that, those that haven't planned for it tend to get into financial woes spending their excess cash and look to cutbacks/layoffs to pay for expenses.

Will the rest of 2022 show more positive numbers and gains in the Markets? It will be interesting to see what develops in August moving forward.

The Bitcoin in July, 2022

 

Since the carnage started in April of 2022 with the drop off in the stock and crypto markets, there's more of a positive outlook this week that things will turn around soon and the Markets are showing that but it's too early to say that this stormy season is over yet. 

Crypto and Bitcoin are highly risky and still in it's teenage years of growth compared to the moderate risk I'm involved with in dividend paying stocks/ETF's.

Bitcoin continues to rule over altcoins and there's always that theory in the background that it's price will skyrocket to new record highs with each cycle of major price ups and downs. It turns into a trap and akin to the big gamble for most but these record highs also made some filthy rich like in past cycles so that keeps it popular.

Now, there's a new theory about a new Token coming along some day that takes the crown from Bitcoin and BTC will fall in price and become an altcoin itself. Fast transactions like Visa and using more "Green" power. Some altcoins are working to achieve this but all a work in progress. Some say Ether/ETH could be that coin in the future but as I mentioned ... it's a work in progress in an impatient world.

Conceived on laptops and desktops, new coins and supporting structures are being developed on a steady basis. Too much to keep track of until one rivals Bitcoin some day and the masses take notice.

The crypto market thrives on speculation and the social media "pump and dump" chats. But I've learned to ignore all that and I've been there since it started so I take gains and move them to Stablecoins or cash when they present themselves and know how far it can fall in a hurry at times. Not betting the farm in other words and play with coins/funds I keep aside for the cryptos I don't need to pay the bills.