Gotta stick with the inflation theme, as, like I keep saying, getting that one (essentially the dollar) right over the next few years will we suspect be key to investment success.
This chart of the US Dollar Index will look familiar to video watchers:
MP is the only (in our view) legitimate U.S. publicly traded rare earth miner (essential to virtually all things tech and renewable energy). Huge love coming their way from government going forward.
Viacom got hammered recently by a hedge fund blowup, taking the stock from $100/share to $40. Their streaming platform is positioned very well going forward. Might be a nice property for Netflix to acquire if they could pull it off (although few are talking about those prospects).
Carbon credits are the device of global green energy accords. Essentially, companies are assigned limits on their annual carbon emissions. They are accounted for as credits that can be traded among institutions. I.e., those that come under the limit can sell credits to those who exceed them (to avoid penalties).
Latin America has been an underperformer (relative to U.S equities), is very cheap, and is uniquely positioned geographically, demographically and economically (although, as you know, there are always structural/political issues to consider) to, among other things, exploit the changing political posture and economic evolution of and demographics in China.
Well, those days are essentially over. As China has become more of a consumption-driven economy, they in essence consume more of everything (including their own production). I.e., as their citizens grow into themselves, their tastes expand, their consumption increases, as does their wages, and as does global inflation.
Note: Macro trader Yra Harris nicely articulates the China narrative in last week’s Futures Radio podcast.
The Fed says they have the tools to fight back inflation should it become a thing longer-term. Well, perhaps, but they’re talking interest rates. And as we’ve stress here ad nauseam for the past couple of years, given the record debt that presently sits on government and corporate balance sheets, seriously hiking interest rates right here… well… fat chance my friends.
They’ll (as an institution [individuals within will pay lip service to the threat]) perpetuate the “transitory” narrative till the cows come home — or till you’re paying $6 for a gallon of milk, if then.
Assuming that’s the case, here’s what one of modern history’s finest says investors should do about it:
“Hedge fund manager Paul Tudor Jones told CNBC on Monday he would “go all in on the inflation trades” if the U.S. Federal Reserve remains indifferent to rising consumer prices. … “If they say, ‘We’re on [the] path, things are good,’ then I would just go all in on the inflation trades,” Jones said.”
Well, no way we’re going “all in”, but, indeed, we are going there in a thoughtful diversified manner with a portion.
Thanks for reading!