Nick Hodge,
Publisher
Aug. 22, 2022
Nick Hodge here with the August issue of Foundational Profits.
I believe we're at a pivotal time in the markets. We've had the S&P rallying since the middle of June, despite war still going on, despite a recession clearly here, and despite 40-year-high inflation.
You have a lot of the bulls saying that the bear market is over, that the bottom is in, and you have the President tweeting that there is zero inflation.
I am diametrically opposed to those views. I believe that we are still in a bear market. I believe that we are still in a recession. I think it's going to last for another couple of quarters.
And I think that the rise in stocks, particularly the S&P that we've seen over the past month or month and a half or so, is a bear market rally.
I go over why I believe those things in this issue. I get into the jobs market. I get into the housing market.
And I go back to 2008 to look at the stock market to show you that there were several rallies in late 2008 larger than the ones that we've seen over the past couple of months that were eventually wiped away before the ultimate bottom was put in in March of 2009.
So you get a little bit of a history lesson as well as a bit of analysis into macroeconomics and the things that are going to continue to drive the market over the next couple of months as summer comes to an end.
I also spend a lot of time going over the latest in energy metals, both as it relates to uranium and as it relates to lithium. We get into some bidding wars that are emerging in the uranium space. We get into why uranium is going to be in a protracted bull market here over the next couple of years, the supply and demand fundamentals, and why countries are turning to it in a big way when they were once opposed and trying to close down their reactors, including Germany and Japan, which are both saying now, "Hey, you know what? I don't want to freeze to death this winter. We better keep these nuclear reactors running."
All that is bullish for uranium. You get exclusive uranium stock recommendations as a member of Foundational Profits.
I also discuss the battery market and the lithium market. There was a new report out from the International Energy Agency last month showing that we needed 50 new lithium mines to come online in the next eight years just to supply the lithium to meet the electric vehicle targets that governments have already announced. I go through why that's impossible, why it takes so long for a mine to come online from exploration, discovery, exploration, permitting, de-risking, financing, and construction.
You simply can't get that amount of new mines online in that amount of time. And that's going to drive up the lithium price. I cover one stock you should be buying now to benefit as a result.
I also get into two picks that have been recommendations in Foundational Profits for some months now, and why it's time to add more of them amid currently depressed prices. One of those is a long-term dividend champion company that I spend a long time going through cash flows, its moats, why it's a good buy right now, why it's able to protect its pricing, and why it'll be a long-term high-return, high-dividend winner over the coming years. So you'll get that. I call it the ‘Habit of High Dividends.’
And then I get into an electric vehicle play that I don't think many people have considered. It's not your Tesla, not your Rivian, not your battery supplier. But it's an industrial company that deals with medium- and heavy-duty vehicles. You’ll see why it's a good buy now as it concerns the Inflation Reduction Act, which has passed significant tax credits for medium- and heavy-duty vehicles and charging stations to become electric for fleets and particularly for school buses. You’ll get a full write-up on the under-the-radar electric vehicle stock that’s poised to benefit.
And then to cap off this issue, I discuss further why this recession is going to last for longer, how inflation steals from your wealth and your upward mobility, and how you can protect from that as we're going to continue to see high inflation for months to come.
The number for July just came in at 8.5%, a little bit less than the month before, but that's still 40-year-high inflation. And I continue to believe that's going to be the number for months to come.
You’ll see how to protect yourself from that and as always, how to tune out the noise, manage your portfolio for yourself, and prosper despite everything that's going on with the economy, politics, and in the world around you.
So I encourage you to check out the August issue of Foundational Profits. It's hot off the press. And I look forward to you joining.
There's a form here you can use to get access for a one-time investment of $99. That'll get you 12 monthly issues where I cover the market from soup to nuts every month, including what I'm doing with my personal capital to navigate these troubled times, to insulate myself and my family from them, to prosper in spite of them — as well as how to get into position for what I see coming after the turbulence we're seeing now.
If you'd like to see the strategies that we're using to do all that, which are beating the market this year despite the S&P continuing to be in negative territory, fill out the form here to become a member of Foundational Profits — and join the thousands of people who now see a better way.
Nick Hodge
Publisher, Daily Profit Cycle