Nick Hodge,
Publisher
Sept. 22, 2021
Bad Septembers and Black Swans aside, the pullback you’ve seen in the stock market over the past few days is shaping up to be just another monthly blip on the road to new all-time highs.
The Volatility Index remains tempered.
The cause of the few down days in stocks — if you need a reason other than stocks don’t always go up — is that the dollar has ticked ever so higher over the past week.
Why is the dollar “stronger”? Because you got a lower-than-expected CPI print. So the narrative — at least for this week — will be that inflation isn’t all that bad.
Two things.
First, that’s bullshit. The inflation is horrible. Check out the CRB Commodity Index hitting new highs against that “stronger” dollar if you want a strong laugh.
The stock market ain’t crashing and this inflation ain’t going away. Not for the balance of this year anyway.
Second, the same inflation that’s driving up your grocery and gas bill is also driving stocks higher.
Even commodities you don’t usually hear much about, but that we are well-positioned in, are heading significantly higher.
It’s driving lithium prices higher. There are various types and pricing is fairly opaque, but at one auction last week spodumene concentrate was sold for $2,240 per tonne, up 79% from the $1,250 per tonne it fetched just two months ago in July!
Similar with uranium, which has now leapt to nine-year highs north of $49 per pound, and it has gotten there in a hurry.
Gold, for its part, doesn’t want anything to do with a stronger dollar, whether it’s in quotes or not. It’s been sent to the corner for a time-out.
Here’s the guidance I recently gave premium members on what to buy, and when.
Call it like you see it,
Nick Hodge
Editor, Daily Profit Cycle
Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Foundational Profits, Family Office Advantage, and Hodge Family Office . He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
*Follow Nick on Twitter.
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