The Next Contrarian Sector to Move
by Gerardo Del Real
Elon Musk — the world’s most entertaining billionaire troll — made headlines this week when he announced that Tesla had invested $1.5 billion in Bitcoin in an effort to maximize returns on its cash position.
The market reacted by sending Bitcoin to a new all-time high of $48,000.
Lost in the mix in that same announcement was the pivot in policy that now allows Tesla to invest in gold and gold exchange traded funds.
Also lost in the mix is anyone buying Bitcoin today is buying after a substantial move higher. Doesn’t mean there isn’t more upside but be clear that you’re not buying like Elon was buying.
The contrarian move was months and years ago.
A similar set up is happening in the uranium space.
While the spot price remains flat, I’ve explained for months that the fundamentals in the space begged for you to get positioned.
Yes, it was boring months ago…
Yes, the spot price hadn’t — and still hasn’t — moved much...
But if you’ve seen or studied a uranium bull cycle... you know that it’s better to be early than late...
And that when the move higher happens... it’s quick and makes the wait worth it.
Uranium Energy Corp (NYSE: UEC) is up over 100% in the past three months.
Fission Uranium (TSX: FCU)(OTC: FCUUF) is up over 100% in the past three months.
Energy Fuels ( NYSE: UUUU) has a 52-week low of US$0.78 and currently trades at US$5.50 a share.
While everyone was fascinated by GameStop and fake silver squeezes, real contrarians were initiating or adding to the better names in a long forgotten sector.
There’s still a lot of upside in the space because the equities are coming off such depressed lows.
The same can be said for quality lithium plays... and, yes, the same can be said for quality precious and base metal juniors.
I recently added a royalty company to the Junior Resource Monthly portfolio that is down over 60% off its 52-week high.
The company not only has diversified exposure to attractive precious metals streams and royalties, it’ll also pay you while you hold it with an industry-leading dividend.
There’s a lot of money to be made in the resource space.
But if you’re going to maximize gains... you have to be positioned before the crowd rushes in.
Get it done.
Let's get it!
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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