Good News (Finally!) in the Inflation Fight

Good News (Finally!) in the Inflation Fight


No curveballs from the April CPI knowledge … this commodity is breaking out as Eric Fry prompt … one other Fry advice for you … final name for the Masters in Buying and selling Summit replay

This morning, we bought the second of this week’s three inflation stories, and all issues thought-about, it was a win.

April’s Client Worth Index (CPI) elevated 0.3% from March, which was barely under the Dow Jones estimate of 0.4%. The year-over-year determine rose 3.4%, which was in keeping with expectations.

Core CPI, which strips out risky meals and vitality costs, rose 0.3% on the month and three.6% on the 12 months, each as forecast.

For some context, the year-over-year core studying was the bottom since April 2021, and the month-to-month achieve was the smallest since December.

Whereas inflation hardly collapsed, you’ll be aware that we didn’t use the outline “hotter than anticipated.” That’s the true win, as this 12 months has introduced a number of inflation stories which have shocked to the upside.

So, excellent news general.

As I write early afternoon, the markets are up properly since immediately’s CPI print breathes life into hopes of rate of interest cuts from the Fed later this 12 months.

Tomorrow we’ll get the Import/Export Inflation report. We’ll hold you up to date.

In the meantime, one in all Eric Fry’s favourite commodities is breaking out, and hopefully you’re within the transfer

Let’s rewind to our April eighth Digest:

Gold set yet one more all-time excessive earlier immediately – it’s seventh consecutive file peak.

Ignore it.

There’s one other shiny steel that’s additionally hovering immediately. And if the Federal Reserve follows by with price cuts in 2024, historical past reveals its returns might outshine these of gold.

We had been speaking about copper.

As you may see under, the pink steel is exploding right here in 2024.

Supply: StockCharts.com

Right here within the Digest, we ‘ve been copper bulls for years at this level, principally resulting from analysis from our macro professional Eric Fry.

It was again in 2020 that Eric made the case for a brand new “commodity supercycle” that will ship the value of sure copper-related investments stratospheric.

Eric was proper. By July 2021, his Speculator subscribers closed their possibility commerce on copper mining large, Freeport-McMoRan (FCX), for a 1,000%+ return.

Since then, the commodity supercycle and copper’s worth have taken a breather. However final fall, Eric urged traders to prepare for spherical 2 of the supercycle:

The “commodity comeback” might start its reign as quickly as 2024, which is just a few brief months away…

And that might imply huge issues for a long-struggling nook of the market… and shortly…

This 12 months’s copper surge is proving Eric proper but once more, however when you haven’t gotten in but, this transfer seems to have loads of extra juice left

You’re most likely already lengthy copper with out realizing it.

That’s as a result of when you imagine price cuts are coming in 2024… when you’re a tech/AI bull this decade… or when you help the inexperienced vitality transition… then you definitely’re bullish on copper by proxy. That’s as a result of copper is among the most vital industrial metals on the earth.

It’s essential for a wholesome, rising international financial system… it’s a “should have” for tech/AI developments (resulting from large computing wants and copper’s position in computing {hardware}) … and it’s a lynchpin element of inexperienced vitality applied sciences. But research present that our present copper provide is inadequate to fulfill coming demand.

We’ve spilled loads of ink in regards to the gross imbalance between copper’s provide and the approaching tsunami demand, so I received’t rehash these particulars in immediately’s Digest. However I’ll level out that we’re not the one one bullish on copper.

Stanley Druckenmiller is among the biggest merchants of all time. He’s credited alongside George Soros as “breaking the Financial institution of England” when the 2 made $1 billion from shorting the pound.

Properly, right here’s “The Druck” from final week in an interview with CNBC:

Copper is a fairly easy story, takes about 12 years, greenfield to provide copper, and you bought EVs, the grid, knowledge facilities, and imagine it or not munitions.

These missiles all bought sufficient copper in them and the world’s getting scorching that we simply suppose the supply-demand state of affairs is unimaginable for the subsequent 5 – 6 years.

In the meantime, yesterday, The Wall Avenue Journal featured an article titled “Why the World Has Gone Cuckoo for Copper.” It highlights how the U.S. and China are actually competing for extra copper.

Backside line: The case for copper stays extremely bullish. It is a long-term, no-brainer progress story.

When you’re in search of a option to play it…

You possibly can start your analysis with the World X Copper Miners ETF, COPX. It holds a basket of high copper mining firms.

As you may see under, it’s up 49% since Eric’s reference to the “commodity comeback” that we quoted in our 10/30/23 Digest. That almost doubles the S&P’s return.

Chart showing COPX nearly doubling the S&P's return since late-October

Supply: StockCharts.com

If you wish to spend money on a particular miner, Freeport McMoRan (FCX), which we referenced earlier, is a top-shelf possibility.

Whereas Eric’s Speculator subscribers cashed in on their FCX name choices for 1,000%+ returns, Eric’s Investment Report subscribers nonetheless personal the inventory outright. They’re sitting on 322% returns as I write Wednesday morning.

In the meantime, Eric has one other play he urges traders to think about…

 In 2000, Elon Musk merged his on-line financial institution, X.com, with Peter Thiel’s software program firm, Confinity, to kind PayPal. Simply two years later, Musk and Thiel bought their merged entity to eBay for $1.5 billion.

Just a few years later, eBay spun out PayPal as a individually traded firm, and it has been a monetary juggernaut ever since.

Right now, 80% of the highest 1,500 retailers in North America and Europe function PayPal of their digital wallets – which is almost thrice greater than the No. 2 participant, Apple Pay.

Regardless of this sector dominance, the final a number of years have been brutal for PYPL traders. As you may see under, the inventory has imploded 79% whereas the S&P climbed 18%.

Chart showing PayPal falling 79% since 2021 while the S&P climbs 18%

Supply: StockCharts.com

While this represents portfolio carnage for PYPL investors who have had to sit through this, Eric believes it’s a fantastic buying opportunity for investors just discovering PYPL. Even more so because PYPL is no longer just a digital payment processing company.

Here’s Eric with more on this:

While PayPal spearheaded the digital commerce revolution, I believe it is now at the forefront of the AI Revolution. The company is fortifying its market leadership by integrating leading-edge AI and machine-learning processes into key aspects of its operations….

PayPal is applying AI-derived insights from its vast customer base to optimize the checkout process for merchants and consumers. 

Eric dives into the details of one way that PYPL is applying AI to its core operation – reducing both false negatives (declines) and false positives (fraudulent charges) during the checkout process. This is big since both forms of false readings cause billions of dollars in lost revenue.

We won’t get into the weeds of those details in today’s Digest due to length, so let’s jump to Eric’s takeaway:

I expect PayPal’s current discounted valuation to disappear as the company enters a new growth phase – and as its AI capabilities fatten the profit margins on that growth…

PayPal is a promising contender in the ever-competitive and ever-advancing AI boom.

Let’s use Elon Musk’s connection to PayPal to update you on last week’s drama with Musk’s company, Neuralink  

In last Thursday’s Digest, we highlighted PRIME, which stands for “Precise Robotically Implanted Brain-Computer Interface.” It comes from Elon Musk’s company Neuralink.

To put it simply, PRIME is Musk’s attempt at merging the human brain with artificial intelligence.

Eric had recently profiled PRIME for his subscribers, which we borrowed from in last Thursday’s Digest. Here’s the quick recap:

Musk and his team at Neuralink built a unique kind of brain surgeon…

It’s a robot, called the “R1,” that can precisely implant a special device in a region of the brain that controls the intention to move.

Neuralink’s medical device, called the “N1,” has more than 1,000 electrodes attached to 64 threads, which amplifies its brain-reading potential.

Because the N1 threads are thinner than human hairs, they can’t be inserted by hand. But Neuralink’s R1 robot can do the job. It can target specific parts of the brain and insert all 64 threads in only about 15 minutes.

That procedure, hence, is known as PRIME.

On the day we published that Digest, news broke that the first PRIME subject was having issues with the technology. Basically, a number of threads had retracted from the patient’s brain. It wasn’t dangerous, just a degrading of the tech’s effectiveness.

Here’s the update from USA Today:

Neuralink addressed this issue, modifying the “recording algorithm” to be more sensitive to the flow of signals between clusters of nerve cells in the brain. And also “improved” the techniques used to translate those signals into cursor movements. 

Neuralink’s fixes “produced a rapid and sustained improvement in BPS, that has now superseded Noland’s initial performance,” the blog post said. BPS, or bits-per-second is a standard used to measure speed and accuracy of cursor control. 

In Eric’s piece that highlighted Neuralink, he was interested in the ways to invest in this cutting-edge technology. While Neuralink is a private company (making a direct investment impossible for most investors today), Eric has found one well-known tech play that offers exposure to Neuralink’s growth. He put the details inside a special report called How to Profit From Elon Musk’s Neuralink.

Earlier than we log out, immediately is your final probability to look at the replay of final week’s Masters in Buying and selling Summit with Jonathan Rose

Jonathan is the newest addition to our company household, helming Masters in Trading Live. He’s a world-class dealer, however extra related to you and your checking account, he’s a world-class trainer of buying and selling.

I’ll let these screenshots from Jonathan’s followers illustrate:

Graphic showing a Jonathan Rose follower making nice money from Jonathan's market guidanceGraphic showing a Jonathan Rose follower making nice money from Jonathan's market guidance
Graphic showing a Jonathan Rose follower making nice money from Jonathan's market guidanceGraphic showing a Jonathan Rose follower making nice money from Jonathan's market guidance
Graphic showing a Jonathan Rose follower making nice money from Jonathan's market guidanceGraphic showing a Jonathan Rose follower making nice money from Jonathan's market guidance

We’re thrilled to have the ability to carry you a dealer of Jonathan’s caliber who’s serving to so many traders generate lifechanging buying and selling earnings. To look at the free replay of Jonathan’s Masters in Buying and selling Summit earlier than we take it down at midnight, click here.

Wrapping up, tune in tomorrow for the outcomes of the third and closing inflation report this week. In the meantime, give copper and PayPal some consideration immediately. 

We’ll hold you up to date on all these tales right here within the Digest.

Have a very good night,

Jeff Remsburg



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