Gerardo Del Real,
Editor
July 24, 2024
Metals Surge on Rate Cut Hopes
We’re about to see fundamental change in Fed policy, possibly as early as next week if former Fed official Bill Dudley is to be believed.
Dudley, who was recently opposed to cutting rates too early, has now done an about-face and is publicly calling for rate cuts as early as next week.
Gold believes it, silver believes it and the dollar believes it with both gold and silver moving higher while the dollar index struggles to hold the 104 level.
Whether or not we get a rate cut next week or in September, the policy shift has important implications that are already playing out in the broader markets.
More than 20% of the S&P 500 companies have reported Q2 earnings with 80% of them beating estimates. Small caps are finally starting to catch a bid and that’s important for the part of the market I dabble in, the resource space.
Long & Strong
We are long utilities. We are long consumer staples.
We are long energy. We are long copper.
Our long-term wealth portfolio now has 20 positions in it.
Click here to get them all now.
With governments around the world once again coordinating rate cuts and the presidential election just a few months away, it’s going to be important that you are positioned for the next leg higher in the commodity supercycle.
Regardless of when the Fed cuts or who wins the presidential election, there are trends in place that will continue.
We know capital will be cheaper and more accessible globally. We know governments are incentivized to add gasoline to the economy’s fire and we know that as a result (because we just did this) the cost of goods will get more expensive.
Meaning higher copper prices, higher lithium prices, and higher uranium prices as infrastructure and supply chain build outs are accelerated with bipartisan financial incentives and bipartisan support for expediting permitting here in the U.S.
Codelco, the world's largest copper producer, and global miner Freeport-McMoRan Copper & Gold recently announced that they plan to extend the life of their joint-venture El Abra copper mine in Chile by 10 years.
It will take approximately 8 years just to permit that expansion. That’s at an existing mine and that’s the point. Finding the stuff that we need to make the stuff and provide the most basic of services is getting more difficult and taking longer.
Billionaires Buy Elections (and Gold)
It’s no secret that billionaires buy elections.
They are throwing their weight around this cycle as well.
But they are also buying gold.
With political uncertainty on the rise…
See why one billionaire is making gold great again.
However you feel about the current state of affairs in this world, there are opportunities out there to profit from while we navigate the ever turbulent sea we’ve managed to get ourselves in.
Let's get it,
Gerardo Del Real
Editor, Daily Profit Cycle