Well, it seems that historically when we get to the current sentiment about the economy, it predicts a strong recession. At this point, it has not happend because taking into account real interest rates, the economy continues being at expansionary levels, but this will cause more harming to purchasing power as inflation keeps growing.
Kenon passed the zscore test in the utilities sector, This sector seems to be robust against the rise in interest rates, it is priced at the same P/E as the S&P, but is well below the valuation of other sectors. This sector is also armored against shocks from the international scenario as its sales depend mostly from local sources of income.
As the Economy shows an outstanding outlook, and labor market data provide signals of strenght, inflation growth becomes a risk that is materializing and will push for further interest rate increases. Under this scenario, discount rates will continue increasing and puting preasure for samller equity valuations.
While the west try to ban transactions on Russian Gold reserves, markets should notice the reduction in gold supply flows and price it at higher levels.
Waiting for more news on Elon's bid on Twitter, a fibonacci rule can help as an entry signal while we wait for more information. 2022 is a once in a lifetime year where all factors converge to invest money while there's blood in the streets, Elon knows it and thats why his eye is on this asset.
