Categories: General Market Commentary- DPC
Topics: General Market Commentary- DPC

GM’s Play in the Commodity Bull

Since last week: 

The jobs numbers came out, and it’s looking like hiring is slowing down somewhat. Could this be the start of the change the Fed wants to see? 

1. GM’s Commodity Play

General Motors has just announced a $50 million investment in a lithium startup called EnergyX, which is developing a more efficient method to extract lithium from salt flats.This is just one example of a company buying a resource miner to help it stay ahead of the competition. With commodities being in a bull cycle now, you’re going to see a lot of big investments and buyouts like this, which is why you want to get in on commodity investments now. 

2. A Shooting in Kentucky 

There was a mass shooting at a bank in Louisville, KY, that left five dead and nine wounded on Monday. The act was carried out by an employee of the bank, and officers arrived three minutes after the shooting started. Tragic events like this are demanding a new approach to prevent future incidents, and one company is working on an AI-powered solution to make prevention a reality. 

3. The EPA’s New Rules

A new EPA rule is set to make it so that as many as 67% of vehicles sold in the US are EVs by 2032. This is setting the US up to be one of the global leaders in tackling climate change and will be pushing car companies even harder to secure their supply of lithium for EV batteries. Lithium companies are only going to continue going up in value because of this. 

4. Georgia Turns on the Nuclear 

Unit 3 at the Plant Vogtle nuclear power site in Georgia generated electricity and connected to the power grid earlier this month. With the climate change battle getting more serious, this could be the first of many activations of nuclear reactors that we see. That’s why uranium miners and investors are going to do well over the next few years.  

What to Look For:

More market volatility and more people seeking haven in gold, commodities, and possibly crypto.

Ryan Stancil
Editor, Daily Profit Cycle