Farmers Feel The Pinch 🌱 Outer-Space Gold Rush 🌕

by | 10 Jan, 2019

 

1. Farmers Feel The Pinch  

And that’s putting it lightly. The prolonged government shutdown is now obstructing US farmers’ ability to claim financial aid or even apply for loans to fund next season’s crop. Looks like President Trump is planting some resentment seeds in one of his strongest support bases.

At a whopping 19 days, the shutdown is officially the second longest in history and it still seems far from over. Farmers were promised $12 billion in relief aid to offset the effects of the US-China trade war, but with nobody to dish out the cash the problem is beginning to snowball.

With the US Department of Agriculture (USDA) closed, farmer loans cannot be approved and important agricultural data cannot reach the markets. The USDA’s data is a vital market driver used to project market trends. Without it, the entire farming supply chain and commodities market is in the dark. The longer the crisis persists, the more dangerous it gets.

For now the situation is under control, but the compounding effect of uncertainty will filter through into commodity and futures prices soon enough. Let’s hope President Trump and Nancy Pelosi can find some common ground before the snowball becomes an avalanche.

 

2. Outer-Space Gold Rush

Investors are eyeing up the moon as the next gold rush destination for investment thanks to its rich mineral deposits and strategic military and commercial positioning. Say what?!

China’s recent mission to the far side of the moon has spurred renewed interest in a space-based economy (don’t get too excited Mr. Musk we’re not there yet). A number of countries and private companies have started honing in on the moon in an effort to either harvest resources or set up shop for further exploration into space.

The moon’s supposedly-extractable water and mineral resources make it a useful weigh station to create fuel and sustain life for commercial and research purposes. It has always also been viewed as the ultimate military high-ground…now that’s a scary prospect.

Morgan Stanley expects the space economy to grow from $385 billion today to roughly $1.1 trillion by 2040, with aerospace & defense and satellite companies set to benefit extensively from the new space-based gold rush.

Companies like Lockheed Martin, Boeing, SpaceX, Alphabet and Northrop Grumman are ideally positioned to take advantage of the space race. Perhaps their stock prices will go into orbit too?

Today we are watching…

1. USD/CNY (#usdcny)

The Chinese Yuan has been appreciating strongly since mid-December, but has accelerated thanks to positive trade talk sentiment. Coming off its weakest value in 5 years, analysts believe the Yuan still has room for a considerable comeback if conditions in China’s market continue to improve.  Worth watching!

2. Chevron (#chevrn)

US oil-producer, Chevron, has been the beneficiary of the boost in oil prices this week with its stock price appreciating 2.51%. Its attractive 3.5% dividend has also caught the eye of investors looking for a strong cash component to their portfolios to offset higher volatility in the market. Stronger oil prices will continue to boost Chevron’s performance, so keep an eye on this one.

 

 

 

 

 

 

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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