Feb 13th 2023 Free Analysis - GOLD

Hey MPA Investors!

Superbowl 57 is done and there was something for everyone to complain about. Whether it’s the game, the refs, the commercials or the halftime performance, everyone has something to say. So we’re not gonna add to the noise and get straight into what matters to us. So let’s jump right in:

THIS WEEKS' MOVERS SNAPSHOT

Gold (ETF Ticker: IAUM) -This week we’re taking it into a different direction. We’ve done a lot of stocks, but let’s dabble in some commodities. It’s ok, don’t be scared. It’s not that different. First let’s define a commodity. A commodity is a good that includes agricultural products, metals, oil, gold, etc. Commodities are also traded in a commodity market instead of a stock market.

There are several ways to invest in gold. The simplest is just to buy a pc of gold. Yup, that’s it. Just buy actual gold. Another way is to buy futures or options, but that’s a bit more complicated. The way we’re going to focus on is ETFs. ETFs are Exchange Traded Funds. Simply that means a group of assets that typically track a specific thing. In this case that thing is gold.

I know this might seem complicated but stay with me, it’s not that complex I promise. A gold ETF is a like buying a group of stocks that are all affected by the price of gold going up and down. So if the price of gold goes up, a gold ETF would go up as well.

The ETF we’re planning on using, that tracks with the price of gold, is IAUM by BlackRock investment group. Again just remember, gold goes up, IAUM will more than likely go up. They are not the only gold tracking ETF. But we wanted to give you at least one you can use if you chose.

Just like with everything investing, if you just get your feet wet you’ll see it’s not that scary. So let’s jump into why we feel gold is a mover.

Why Gold?

You may have heard that inflation was high and that the Federal Reserve is trying to lower the inflation by raising rates. Raising rates makes it more expensive to borrow money. Which reduces the amount of spending and as result reduces inflation. That’s the simplified version.

As inflation has gone down so has the price of Gold. But the Federal Reserve recently announced their intent to stop raising rates. Which would over time stop the decline of inflation. If that’s the case Gold should start to bounce back.

Why we feel there’s a buying opportunity:

1. In 2022 Central Banks have bout the largest amount of Gold since 1967. That demand for Gold should continue in 2023 which could continue to bolster the price of Gold.

2. Bank of America expects Gold to go from $1,852.50 (as of this e-mail) to $2,000. Due to the fact that they expect the Federal Reserve to start cutting interest rates by December 2023. Back to the idea of, lower interest rates=higher inflation=higher gold prices.

CURRENT PRICE (as of this email): $1,852.50

TERMS YOU NEED TO KNOW

Commodity -  A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are most often used as inputs in the production of other goods or services. Examples include, gold, copper, natural gas, livestock, corn, wheat, etc…

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk. Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation. So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis. We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.

Are you interested in Commodities?

See you on Thursday!Thibaud & PhilipFun fact about the stock market: There is no perfect way of assessing a stock. There are many different metrics analysts use to determine a good investment, but none are perfect. Just like in everyday life there are always things we can't anticipate.