Sometimes I get thoughts in my head, I’ll sit down, write them out, and later on I might expand on them to share with you.
Over a week ago I thought about talking about one of your favorite subjects - commodities.
Here’s what I was going to share with you:
I’m very interested in investing in copper.
I’d love to invest in a Montana copper company, but there are none.
So I’m thinking about Freeport McMoRan. It’s the only copper company operating in the US.
It’s trading for around $31 a share right now. A year ago it was at $9.
The reason I bring up a commodity like copper is because of the price fluctuations over the past year.
Yesterday that stock closed at $43.
Copper is around $10,000 a ton right now, and many think it’ll reach $13,000 in a few months. If Biden gets his green new deal and all houses need to be rewired, it’ll shoot up a lot more.
I’m so glad that I decided to buy copper stocks shortly after I wrote that. Supposedly, copper prices have shot up over the past week because the 5-day Labour Day Holiday in China, and all those workers coming back to work.
I know, it doesn’t make a whole lot of sense to me either. That’s how the American economy works today - the less sense it makes, the more profitable it is.
Copper has shot up 28% since January and 115% since its low last March.
I decided to buy some shares of Southern Copper Corporation, a Mexican-owned company that’s the largest publicly traded copper producer in the world.
I’ve seen a 10% return on my investment just in the past week.
I also bought shares of Platinum Group Metals, a company based in South Africa that focuses on platinum and palladium.
That’s only up 3% over the past week, but I think it’ll go up a lot more.
The lumber stocks I told you about a week or so ago have already appreciated by 17%.
Right now 'the experts' call it “transitory hyperinflation,” as if it’ll go away. I don’t think it will. I think the prices for everything will continue to go up, and for probably more than a year.
I’ve already decided that I won’t spend money on anything but food, bills, and other basic staples. Millions of other households are coming to the same conclusion, and this’ll put the brakes on our already shaky economy for years.
Was it some kind of Freudian mistake to have Biden meet with Carter this past week...the president that’s most associated with inflation?
I think it’s gonna get a lot worse before it gets better. If you’re in the large blue cities - Chicago, New York, Seattle - it’ll never get better.
In those places, young millennials aren’t so much interested in investment opportunities so much as smashing in corporate windows with their corporate shoes.
They’ll smash Starbucks’ windows by night, then go back to the same boarded-up store the next morning to get their ‘fix.’
Mommy and daddy will continue to send their little baby money for that latte, just like they helicoptered over little baby for little baby’s whole life.
But one day the market will crash, copper won’t be worth a thing, and mommy and daddy won’t be able to provide for little baby anymore.
That’s when the desperation will start. If you thought the looting and the burning was bad already, just wait.