📈 Gold is Climbing, Oil Sliding

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Good Morning!

Gold prices are booming whilst Oil continues to fall, so what gives?

We also share a great summary of a very impactful book on Charlie Munger, and jump into US lawmakers reactions to the recent Shein IPO news.

Grab your triple shot espresso with almond milk, one pump of vanilla and three pumps of hazelnut, sprinkled with cinnamon and let's get into it! ☕️👇️
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Markets

What record high gold prices mean for markets (3 minute read)
Gold prices have recently reached unprecedented heights, surpassing $2,100/oz and even touching $2,150 in intraday trading, marking the highest recorded price in history. Traditionally viewed as a safe haven asset, gold becomes particularly attractive to investors during periods of uncertainty or fear in other markets.

While the precise catalyst for this surge is not easily pinpointed, the evolving interest rate landscape is speculated to play a role, with expectations of widespread rate reductions in the coming year. The appeal of gold, being a non-interest bearing asset, tends to increase in environments characterized by lower interest rates.

Over the years, the relationship between gold and other markets, such as stocks and forex, has shifted. Historically negatively correlated with the S&P 500, gold has typically performed well when stocks are down. However, since the onset of the pandemic, this correlation has become more positive.

Oil Prices Set for a Seventh Weekly Loss in a Row (2 minute read)
Crude oil prices faced their seventh consecutive weekly decline, driven by apprehensions surrounding oversupply and weakened demand that offset any positive impact from the latest OPEC+ production cut agreement.

Concerns over oversupply surfaced when the Energy Information Administration revealed a record-high U.S. crude production of 13.2 million barrels per day earlier this month. The bearish sentiment was further exacerbated by ongoing uncertainties regarding the strength of demand from China, highlighted by a slowdown in imports, which hit a four-month low last month. This decline suggested a potential moderation in China's voracious appetite for crude.

How deglobalization could ripple across the economy (3 minute read)
Prominent economic powers, including the United States, are increasingly adopting an inward-focused approach, a trend accelerated by the pandemic and initiatives aimed at bolstering domestic industries. This departure from hyper-globalization raises significant uncertainties about the future global economic landscape.

During a Council on Foreign Relations event, IMF managing director Kristalina Georgieva and other influential figures expressed concerns about the potential consequences of these geopolitical shifts, warning that they could result in a more fragile global economy. Georgieva emphasized the need for a mindful course correction, acknowledging that during the peak of globalization, there was a degree of complacency that now requires careful recalibration to ensure a healthy and balanced trajectory forward.

• Pouring Profits: Why whiskey as an asset class.

• American Single Malt is a brand new classification of whiskey, created by the Alcohol and Tobacco Tax and Trade Bureau in the summer of 2022. The new classification now allows US whiskey brands to market themselves as competitors to Scotch. 

• The new classification has resulted in a flurry of brands trying to release their own Single Malt offerings. However, the process for making single malt is different than bourbon and there currently isn't enough single malt distilling infrastructure in the US to meet the new demand. 

• You can now profit off this trend: Vinovest enables you to invest in new make American Single Malt before it’s matured and sold to brands. Vinovest will take care of storage, insurance and eventual selling of your whiskey.  

• It’s time to bottle your wealth. Get started in under 5 minutes at Vinovest.co.

From our partners

Investing

The One Book That Changed My Life (12 minute read)
Imagine having a comprehensive manual for life, offering precise guidance on health, wealth, love, and happiness. This article delves into the often underestimated yet powerful book, "Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger," attempting to distill the key insights from its 532 pages. The book is a collection of Charlie Munger’s greatest advice, the recently departed long-time partner of Warren Buffett at Berkshire Hathaway, this book provides a valuable resource of wisdom that extends beyond conventional boundaries.

Lawmakers ramp up scrutiny of Shein after retailer files for IPO (4 minute read)
Lawmakers are intensifying their examination of Shein following its confidential filing for an initial public offering last week. A congressman, holding a key committee position, is considering legislative action to prevent the retailer from trading unless the SEC rejects its application.

In an interview with CNBC, he emphasized the SEC's responsibility to "do their job" and block Shein from U.S. exchanges due to allegations of forced labor and violations of U.S. trade laws. The congressman urged the SEC to thoroughly scrutinize Shein's business and management before allowing it access to U.S. capital markets.

Shein, known for shipping products directly to American consumers through its Chinese suppliers, has been able to navigate oversight. While expressing support for de minimis reform, the company has yet to specify the desired changes.

Tata plans new iPhone factory to hasten Apple’s India expansion (3 minute read)
Tata Group, is set to establish one of India's largest iPhone assembly plants, aligning with Apple Inc.'s strategy to enhance manufacturing activities in the country. The proposed facility, located in Hosur, Tamil Nadu, aims to house approximately 20 assembly lines and provide employment for around 50,000 workers within the next two years.

The goal is to make the plant operational within 12 to 18 months. This initiative contributes to Apple's ongoing efforts to localize its supply chain and strengthen its collaboration with Tata, which already owns an iPhone factory obtained from Wistron Corp. in the neighboring Karnataka state. As part of its broader strategy, Apple is actively diversifying its operations away from China.

Money

The Ultimate Year-End Financial Checklist (17 minute watch)
This is a comprehensive 2023 year-end financial checklist, offering valuable insights and guidance for individuals navigating their financial planning. It provides viewers with a strategic roadmap to assess and manage their financial goals as the year concludes, I would highly recommend a watch.

🐥 Best of Twitte

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