The markets are currently significantly impacted by a variety of factors, which does not offer a rosy picture overall. There are several things that are now being watched, so let's go over them one by one.

US Dollar:

The US Dollar is at a decade high, and people continue to regard the USD as a safe haven in these uncertain times, which raises the value of the USD in the FX markets. However, it is not all positive because it makes it tougher for corporations to do business throughout the world, as Morgan Stanley analyst expects that each 1% increase in the dollar index has a negative 0.5% impact on S&P 500 earnings.

Uncertainties in United Kingdom and China:

Chinese markets had their worst day since 2008 as President Xi Jinping and his allies consolidate power to retain control of the country for another five years. When the President took control of the government and replaced key positions with loyalists, the yuan fell to a 14-year low in the global market. Due to the economy's poor performance, which led foreign investors to sell their Chinese investments. As the world's industrial powerhouse, China shows no signs of slowing down its zero-covid policy soon, which concerns investors about future growth potential.

The situation in the United Kingdom isn't much better. Following a period of significant political and financial uncertainty, the UK now has a new prime minister, Rishi Sunak, who will succeed Liz Truss. Following the announcement, markets began to calm down, with the 30-year gilt yield falling to 3.67 percent. However, the looming economic recessions, energy crisis, and political uncertainty are carefully watched by global markets, and his policies are expected to provide a roadmap for the country's future.

Conclusion:

Even if the market is fraught with uncertainty and ambiguity, this does not mean that there are no opportunities. Lithium, copper, nickel, and other minerals have enormous potential for use in the development of a long-term sustainable planet and electric automobiles. In volatile markets, gold, like the US dollar, can be a good inflation hedge. With all of this said and done, brace yourself for a bear market in the near future.

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Written By: Thegoldstocks.com

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