Nick Hodge,
Publisher
April 14, 2021
After a break for Easter, I'm back with weekly market update videos for you. Stocks are back at record highs, oil is going back up like I said it would, and copper is saying that everything is still awesome.
I took the family back to Maryland from Washington State to see the grandparents and extended family. It was a wonderful trip. Glad to be back on a plane. Good to observe the airports. Things picking back up.
I think the "Reopening Trade," is on. Planes were full, parking garages were full, pockets are full with stimmy money, so people are ready to get back out there.
I have some recommendations I'm going to be making to the Foundational Profits members in that vein, over the next couple of weeks, but I'll start with Macro Markets because stocks are back at record highs. S&P 500 over 4,100. The Dow ripping higher. Infrastructure stimulus announced a couple of weeks ago.
Everything continues to be awesome, except for seeing inflation continue to manifest in commodities, which I'll talk about in a second.
But over the past month, exactly what I told you was going to happen, happened. The dollar rise was a fake-out.
It, along with US 10-year rates, has backed off over the past week, which has allowed stocks to go back up, and has even allowed gold to get comfortably back up to the mid-$1,700s.
Stocks at record highs, expect that to continue. Industrials, materials leading the way here. And energy. Let's talk about energy.
I had told you that I was recommending energy in late November, early December 2020, and that it was the leading sector for the first quarter of the year, and that we had taken some profits off the table. But a couple of weeks ago, I was telling you that oil pulled back to below $60 a barrel and that it was time to start looking at it again. And, indeed, that was the right call.
Oil looking strong, again. Exxon was a great buying opportunity a couple of weeks ago when I was talking about it.
And then I'd note copper as well, back to $4. So the doctor saying everything is okay, and that's attributable to a lot of things.
The commodity cycle, reinflating the copper shortage that's imminent, because of the electrification of everything, and now that has some real backing with the infrastructure stimulus that was announced and the real oomph that's behind this ESG trend.
This environmental, social, and corporate government governance investing trend is evidenced by BlackRock debuting some ETFs that immediately had record inflows,. But they're really just lipstick on a pig. They just own a bunch of tech names that aren't particularly related to the trend.
So you can do much better ESG investing by picking individual names, which of course is what I do. And that's what I'm doing.
Like I said, reopening trades on the way to paid up members of Foundational Profits. And we're also in some cleantech names and uranium names that have been doing well, and I believe will continue to do well.
It's been a decade or so since we had a strong bull run in clean and renewable energy. I know, because I co-wrote a best-selling book, "Investing in Renewable Energy," back in 2008.
And that trade, or cycle, is here again.
So more on that in the next couple of weeks, as I put out a video on one of the best ways I see to play that, especially as it relates to the implementation of virtual power plants.
Call it like you see it,
Nick Hodge
Editor, Daily Profit Cycle
Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
*Follow Nick on Twitter.