Global Contag-yawn. Buy the Dip.

China. Evergrande. Contagion. Collapse.

Those were the hot words yesterday as the Dow corrected nearly 1,000 points at its low before closing down some 600 points.

Bitcoin was down. The uranium equities were down 15-20%. Copper is back down near the $4.00/lb level.

What to do? Is this the start of the bear’s revenge? Was the recent uranium run a headfake you should sell into? Is inflation transitory?

A lot of questions yesterday with simple answers: Buy the dip.

Ask Germany or China or the U.S. about inflation.

German producer price index (PPI) just hit a 47-year high.

China — for the first time ever — is releasing part of its strategic oil reserves into the market by conducting a bid for 7.38 million barrels of petroleum on September 24th.

Aluminum is near 13-year highs. Oil is up 90% from a year ago. And PPI in China just jumped 9.5% in August.

Here at home, beef prices are 15% higher than they were in December.

I could go on but the same people who told you inflation was transitory are probably now telling you that the uranium rally was a headfake and one you should sell into.

If uranium was a football game we’d be halfway through the first quarter of the game.

There is a lot of game left and a lot of money to be made.

Could there be a black swan event that causes real contagion?

Sure, but it won’t be Evergrande because that’s been on the radar for quite some time.

There is also a lot of money to be made in the gold space. The 13-month consolidation has frustrated the most ardent of goldbulls.

Very similar to what happened with most uranium bulls before the recent turn.

The uranium portfolio was locked and loaded before it was trending on twitter.

That’s why we’re up triple digits on most positions and why every uranium name will make new 52-week highs… soon. Again. (Get my current uranium stock recommendations here.)

By its very nature it’s not popular to be a contrarian but it is profitable.

I suggest you get your gold ducks in a row.

Let's get it!

Gerardo Del Real

Gerardo Del Real
Editor, Daily Profit Cycle

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Daily Profit Cycle, Junior Resource Monthly, and Junior Resource Trader. For more about Gerardo, check out his editor page.

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