Inflation, Fed Decision, Commercial Real Estate...and the URANIUM ☢ Breakout with My Top Picks
A few thoughts headed into the week
Happy Monday…
A few quick thoughts headed into the week…
…PLUS Uranium breaking out.
👉🏽 This week is one of the most important of the summer:
✅ CPI Inflation - Tuesday
✅ PPI Inflation - Wednesday
✅ FED Meeting - Wednesday
✅ Retail Sales Data - Thursday
✅ Initial Jobless Claims - Thursday
Here we go!!
🏛 Fed officials begin their June meeting tomorrow.
Tough decisions to work through: high inflation, possible more banking failures looming, jobs market not weakening (they WANT a weak market), and a seemingly resilient economy.
Over the last 14 months, the Fed has hiked rates 10 consecutive times totaling 5%.
The Fed is expected to break that streak with a pause this week.
However, expectations are to raise rates by another 25 bps during their July meeting.
🏗🏨 Commercial Real Estate Loans - UH OH!
Chart below 👇🏽 % of loans that are INTEREST ONLY.
Interest-only loans as a percentage of new commercial mortgage-backed securities...
2010: 17%
2013: 51%
2016: 65%
2019: 84%
2021: 88%
An estimated $1.5 trillion in commercial mortgage loans are coming due over the next 3 years…and rates are MUCH higher. 🤷🏽♂️
☢ Uranium is on the move and breaking out
I’ll be putting something out to my premium subscribers in the coming days in more detail, but I wanted to get you all looking at the same charts and companies I’m watching closely.
Below is the chart of URA, which is the Global X Uranium ETF (exchange traded fund).
Volumes are picking up. Price breaking out across the sector.
Below are the quality uranium companies I’m invested in for the next leg up. Many have asked me if they are late or if they’ve missed the boat on uranium.
Answer: NOT EVEN CLOSE.
If I were not yet invested in uranium, these are the top companies I would be initiating positions in NOW…
Keep reading with a 7-day free trial
Subscribe to The Tobin Report to keep reading this post and get 7 days of free access to the full post archives.