Spotlight Weekly – Excited About Metals
A quick look at the portfolio shows me that we are tracking the S&P 500 right now
That’s to be expected since we only launched in November. As we get further along, I expect to see our performance begin to outpace the broader market.
We are going to focus on sectors that will outperform the S&P 500 over the next couple of years. Battery metals like copper and lithium, energy metals like uranium, infrastructure companies, engineering, and food are all going to do well.
I’m particularly excited about metals like copper. The market doesn’t get the story yet, as you can see in this chart:
Copper is in everything electric. There isn’t a substitute for it in motors or batteries. And yet, it sold off hard in July 2022. That was like a gift to investors. It rallied in 2023. And I expect it to retest its highs this year. There’s too much demand and not enough supply. That’s a recipe for higher prices.
In the short term, you can expect us to stay defensive, as inflation pinches all of us. We are going to avoid real estate and its down stream companies. And we won’t be buying any companies that rely on excess spending. I’m leery of companies like Disney, Lululemon, etc. Because I think people are going to be so upset about high food costs that they won’t be spending extra for fancy clothes or Disney Plus.
I could be wrong, but we’ll see.
Instead, our focus this year will be on companies that are undervalued, overlooked, and going up. That’s our basic test. If we can meet those three simple criteria, we can build wealth.
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