No interest rate cut per Powell = Great news for mining stksChairman Powell of the FED shot down any hint of a rate cut in March 2023 and, probably none in May meeting either.
They want to see inflation at 2%, right now it is trending at 3% year over year.
My guess is we get rate cuts maybe in September or December 2023.
The blue chip stocks plunged on this news as they are too highly valued on a P/E ratio if rates are staying high. Normal trend is stocks trade at 30x PE if rates are low and, 20x if rates are high.
Market got it wrong and the air is coming out of the balloon.
This selloff in big stocks is GREAT NEWS for speculative stocks like NILI.
NILI is fully funded for year 2024 and interest rates have no effect. In addition P/E is irrelevant to NILI. What comes into focus is their property value: $ 58 million market cap versus $ 67 billion asset value.
Expect $$$ to rotate towards speculative mining stocks. As market plunges off, I expect NILI to soar to new highs.
Good Luck,