For the past three years, a virus gripped the world in fear that required many to isolate themselves from family and friends. Authorities, the media, and health practitioners advocated social distancing, masking, vaccinations, and staying at home to prevent a contagion. These measures may’ve appeared to curb the spread, but their impact on the global economy and society is incalculable.
Nowadays, much of society is trying to put the outbreak behind them, going about in some semblance of normality.
However, just as one catastrophe is behind us, we’re running headlong into another that’s unfolding in a big way.
Interestingly enough, it’s another crisis of contagion. This time it’s a financial one involving debt, trust, and fear.
We’ve seen a few banks that have already collapsed or merged into another to try to prevent the disaster from erupting. Swiss National Bank provided significant financial support to UBS Group [NYSE:UBS] to help them buy Credit Suisse [NYSE:CS], which has all but fallen foul under its pile of bad debt and crumbling asset value. This act of rescuing a once major investment bank could send ripples across the system and destabilise it.
I know it may seem impossible to compare how to manage a virus outbreak and a banking crisis.
Of course, a depressed asset can recover and become a ‘good asset’…so you can salvage the situation and avert a disaster. The same can’t be said regarding a pathogen that could harm or kill.
However, a virus outbreak and a banking crisis share in its vulnerability for panic and hysteria.
And herein lies the problem. There’s another contagion brewing…a financial one this time…and everyone is focused on protecting their wealth from the blows to come.
I propose a better question: How could you come out ahead of everyone during such a crisis?
This is what I want to discuss today…
Green agenda out, but commodities boom is assured
The world is in a real mess. The global lockdowns and the ravages of governments seeking to impose socialism and woke ideologies have left many developed nations in shambles. Think about many major cities — even the richest nations are gridlocked with rusting and crumbling infrastructure. And then there are developing nations with a growing middle class that’ll consume more to improve their living standards.
Don’t think it’s just about a clean energy revolution and electric vehicles (EVs). I think that’s a nice cover story to humour the public. A recent article from Reuters (surprisingly) showed that electric vehicles could actually waste more resources. Insurance companies revealed they’d have to scrap vehicles damaged in a minor accident…because a scratched battery pack is too expensive to replace. The gloss behind EVs and the green agenda is already unravelling.
To further show that this agenda is fast breaking down, many investors are already pulling out of funds that are tied to the Environmental, Social, Governance (ESG) paradigm. Bloomberg analyst for ETFs Eric Balchunas reported recently that there’s been a whopping $5 billion of fund outflows from the iShares ESG Aware MSCI USA ETF [NYSE:ESGU].
Also, the entire ESG brand is being exposed as a form of crony capitalism that has no place in a free market. The CEO of BlackRock, Larry Fink, has decided to walk back on his commitments to ESG, facing pressures from the US House of Representatives challenging their legitimacy of constraining allocation of capital to maximise investor value.
The leading proponent has tugged his tail between his legs and therein spells the demise of this toxic investment ideology.
It’s time to think from a different perspective. How about taking the view of a societal renovation to improve living standards?
Forget about a globalist world order involving some supernational governing body like the United Nations or some World [insert term here] Organisation. There’s no future for them.
I’m talking about a global shift from China being the world’s factory to a multipolar world order where countries will get into regional blocs and work to improve the allocation and utilisation of their resources.
And this points to a massive boom in commodities going forward.
Position for potential life-changing gains with this strategy!
I highlighted last week that investing in real assets — precious metals, commodities, real estate, and shares in mining, agricultural, energy, and manufacturing companies — are ways to capitalise on the opportunities that can come up during a market panic.
Now, it’s one thing to recognise this…it’s another to have the emotional resilience to resist herd mentality. After all, investors can sell indiscriminately when they see everyone else doing the same. It’s the ‘last man out’ problem. No one wants to be there when the cupboard is bare.
But truth be told, those who know what they’re doing could seize such opportunities and ride them to significant gains.
Those who know my forays into investing in gold mining companies know that I’ve grabbed the bull by its horns in the past…and it was rewarding! Of course, I learnt to manage risk from the inevitable losses I had along the way.
And my gains are dwarfed by the giants like Rick Rule, Eric Sprott, Peter Schiff, and Pierre Lassonde. I learnt my craft off their experience and insights.
You can do the same.
It’s a tall order to tackle this on your own. There’re so many commodities out there, with several hundred companies to choose from.
Which commodity should you pursue?
Which company is worth taking a punt?
This is where my colleague, James Cooper, can take the reins and guide you. His newsletter, Diggers and Drillers, has garnered praise from many who’ve signed up in the last four months. An accomplished geologist, James has experience in uncovering some noteworthy finds. Some of these finds are now mines in operation.
He’s now about to unveil a premium service to those who want to take a chance in investing in early stage commodity explorers. Whatever minerals or metals you’re intrigued about, James is going to seek the explorers with the most potential in order to give you the chance to make some immense gains.
It’s not for the faint-hearted or those seeking a secure dividend stream. This is akin to skydiving or traversing a glacier. No barriers, no cushions…and maximum thrill.
If you’re excited by this, put your name down here for our ‘Graduation Day’ event, scheduled for Thursday next week. All the details will be revealed then…including inside intel on a specific play James is looking at right now. Click here to ensure you don’t miss it.
As central planners wring their hands in woe and wrack their brains thinking how to use sweet, empty words to calm the masses, you’re going to ride the commodity bull that they’ll unleash and hopefully walk away with serious gains.
God bless,
 |
Brian Chu,
Editor, The Daily Reckoning Australia
