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Gold & Uranium Stocks to Buy - June Foundational Profits Issue

Nick Hodge here, the editor of Foundational Profits, excited to tell you about the June issue and what you can expect inside of it. 

There is a lot going on in the markets. 

The S&P has moved higher for the first six months of 2023, and lots of folks out there think we're in a new bull market. 

I take a long look at the S&P 500, what has been driving it, and conclude that we're not out of the bear market yet. There are a lot of reasons in this issue that show why that’s the case, starting with liquidity.

Liquidity is something I've been talking about for a couple of months. In fact, last month I said liquidity was going to be the word of the month and perhaps even the year, and that's shaping up to be correct. We had a debt ceiling deal recently that averted catastrophe in the market and saved the country from defaulting, but there are still some bookends that need to be put on that. Specifically, the Treasury that needs to refill its coffers, and that's going to take over $500 billion of liquidity out of the market in the coming weeks.

That liquidity has to come from somewhere. There's reason to suspect that it could come out of stocks, with stocks being sold down as a result. 

We also have ongoing tightening with the Fed, and I'm not just talking about recent rate increases, which have been the fastest on record and the highest on record, going up to 5% on the federal funds rate in 14 months. I'm talking about quantitative tightening by the Federal Reserve, which is ongoing and taking another $95 billion of liquidity out of the market every single month. 

And then you'll soon have the resumption of student loan payments, which have been on pause since COVID relief measures were enacted. That will see 40 million Americans return to average monthly payments of $400 on their student loans. That's another $16 billion a month, or $192 billion a year of liquidity that's going to be taken out of the system going forward, and that's why liquidity is the next concern for this bear market.

You also have unemployment starting to tick up in ISM numbers on the services and manufacturing side that are showing ongoing slowing and contraction. 

So this issue takes a long look at the S&P and the macro markets. 

There's also a very deep dive on gold, probably over a thousand words just on gold, complete with charts. I go into recent annual production, central bank buying, and ETF flows. I look at the fundamentals of the producers and the junior sector as they relate to the gold price. There is plenty to chew on about gold in this June issue of Foundational Profits. 

I also highlight two gold names that we're buying now and, of course, that I own as part of my safe long-term portfolio because that's what this letter is all about: What I'm doing with my longer-term safe capital.

Uranium gets some play in this June issue as well. We take a look at jurisdiction, why it matters, and some events and words that have been spoken lately that speak to why jurisdiction matters in the uranium space and why having assets in North America is so important. We have a couple of uranium stock buys as well. 

And then I take a look at the bureaucratic demise of logic through a recent class-action lawsuit that took 10 years to resolve and just came to a completely nonsensical conclusion that highlights the wrongheadedness that is currently showing in the government and the various branches of government. 

There is lots to unpack in the June issue of Foundational Profits. Lots of stocks that are buy-rated, lots of analysis on the broader market and the gold sector. 

And I hope you will check it out and join us by becoming a new member by filling out this form.

Nick Hodge
Publisher, Daily Profit Cycle