The IEA’s case for investing in minerals/metals … how to add exposure to your portfolio … Luke’s new trading service is exploding … tracking the winners over the last 48 hours
Want to make a lot of money this decade?
Put critical minerals and metals into your portfolio.
For many months here in the Digest, we’ve urged readers to invest in rare earth minerals and industrial metals. After all, while everyone is chasing the bright shiny object of AI, these minerals and metals are, quite literally, the building blocks of not just AI, but all our cutting-edge technologies…
AI… electric vehicles… clean energy storage solutions… quantum computing… augmented reality… you name it.
But rather than hear the investment pitch from me again, I’ll let the International Energy Agency (IEA) make the case this time.
From its just-released Critical Minerals Market Review 2023:
Record deployment of clean energy technologies such as solar PV and batteries is propelling unprecedented growth in the critical minerals markets.
Electric car sales increased by 60% in 2022, exceeding 10 million units. Energy storage systems experienced even more rapid growth, with capacity additions doubling in 2022.
Solar PV installations continue to shatter previous records, and wind power is set to resume its upward march after two subdued years.
This has led to a significant increase in demand for critical minerals.
From 2017 to 2022, demand from the energy sector was the main factor behind a tripling in overall demand for lithium, a 70% jump in demand for cobalt, and a 40% rise in demand for nickel.
In 2022, the share of clean energy applications in total demand reached 56% for lithium, 40% for cobalt and 16% for nickel, up from 30% for lithium, 17% for cobalt and 6% for nickel five years ago…
…Energy transition minerals, which used to be a small segment of the market, are now moving to center stage in the mining and metals industry.
The report overflows with statistics highlighting growth demand, sector investment and exploration, and even snowballing venture capital allocations. But all of it can be summarized in one bottom-line takeaway…
Put critical minerals and metals into your portfolio.
How to invest
As the IEA report just highlighted, lithium is emerging from the pack as one of the most in-demand metals.
How might you play it?
We recommended Albemarle (ALB) here in the Digest on April 24th. It’s a top-tier, North Carolina-based lithium miner and refiner. If you hopped in that trade, congrats, you’re up 40%.
Chart showing us up 40% on our Albemarle trade since late April
Source: StockCharts.com
While that’s a big gain in a short amount of time, we believe more gains are coming. Remember the big picture: Demand for lithium is exploding and will keep climbing this decade. Yes, it’ll be a bumpy ride higher, but the “higher” part is where your focus should remain.
If you prefer safety in numbers, there’s also the Global X Lithium ETF, LIT. Its heaviest weighting is Albemarle, but it also holds Quimica, which is a leading Chilean lithium company.
But there are two things to watch out for with LIT.
First, with Quimica, there’s the potential for nationalization as Chile’s President Gabriel Boric has made sounds of taking over all the country’s lithium operations.
Second, because this is an ETF, you’re investing in lots of “lithium adjacent” companies rather than pure-plays. For example, the top 10 holdings include Tesla, Rivian, Panasonic, and Samsung. All solid companies, but not really the best way to get pure lithium exposure.
Meanwhile, copper is another critical metal for tomorrow’s leading technologies.
Our macro expert, Eric Fry has been trading copper miners for decades, some to the tune of 10X profits. One of the most recent 10X winners was the 1,400% gain on Freeport-McMoRan (FCX) which Eric’s Speculatorsubscribers enjoyed in 2021.
FCX remains a good long-term hold today. Though it’s down on the year, it’s up 22% since late-May.
If you want to go the ETF route, we’ve highlighted COPX which is the Global X Copper Miners ETF. It holds FCX along with mining heavyweights BHP, Glencore, and Teck Resources.
For rare earth minerals, the simplest, one-click way is with REMX, which is the VanEck Rare-Earth/Strategic Metals ETF. For more on the rare-earth metals story, check out our Digest on the subject from last week.
Whether you’re looking to add these minerals and metals miners to your portfolio as a buy-and-hold investment or just as a short-term trade, there’s a growing bullishness here. Don’t miss what’s going on.
Speaking of “short-term trade,” on Tuesday night, Luke Lango debuted his boldest trading strategy ever – and the results so far are, frankly, jaw-dropping
Luke is our hypergrowth expert, as well as the editor behind Breakout Trader, which is a quant-driven, momentum-based trading service.
And while Breakout Trader has been racking up an impressive portfolio of winners since its launch last year, Luke saw an opportunity – a high-octane adaptation of this system to take advantage of a certain corner of the market that’s been skyrocketing here in 2023 (and no, I’m not referencing AI).
Here’s Luke with more:
My team and I have spent the past several months designing a new quant trading system that targets fast and furious returns in Wall Street’s most explosive stocks.
Last Thursday, we “soft” launched this system to our most exclusive subscribers. Subsequently, on Friday morning, we issued the system’s first two Buy Alerts.
And both stocks have soared since then.
As I write Thursday morning, those two stocks are up, respectively, 17% and 33%.
To be clear, this service isn’t for everyone
Luke stresses that this is not a normal trading service – he calls it the “quintessence of high-risk, high-reward.” But for those willing to take the risk, the rewards are already speaking for themselves.
Back to Luke:
We didn’t design this trading system for the average trader.
Your typical retail investor just wants to buy a handful of stocks and hold them for a few years. They’re happy with 10% to 20% returns per year.
And to be frank, this system is not for that investor.
Instead, we specifically designed this system for serious traders – those who want to take an active approach to investing and aren’t satisfied with 10% to 20% returns per year. We designed this system for traders who want a lot more bang for their buck…
So, how much “bang” are we talking?
Well, we just highlighted the returns of Luke’s soft launch recommendations (to be clear, these are live trades in his new portfolio). But this past Tuesday, Luke recommended five additional, new trades. And how are they doing?
One is basically flat (down 0.25%). The other four are up, 7%, 14%, 23%, and 28%.
Again, this is since Tuesday – two days ago.
The methodology behind these gains
Let’s jump back to Luke for the overview of how this new trading service works:
We identified the most explosive corner of the stock market – a tiny portion of stocks that regularly account for 30%, 40%, even 50%-plus of the market’s biggest winners. And we created a quantitative trading system to regularly tap into this sector’s explosive profit potential.
This AI-driven system runs all the stocks in this sector through various criteria to identify which are poised for a big pop.
The ultimate goal?
Find the most explosive stocks in the most explosive corner of the market and buy them for mega short-term profits, over and over again.
Once again, Luke is clear that trading these kinds of stocks involves significant risk. And while his team engineered their system to mitigate risk exposure, nothing is fool proof. And that’s why this system isn’t for everyone.
Stepping back, if trading isn’t for you, don’t overlook what’s happening with critical minerals and metals. This is a decade-long growth story that deserves a place in your portfolio.
