With a recession and market plunge virtually certain, isn’t it reckless to buy commodities and basic materials now?
Perhaps, but the charts and timing signals compel me!
Having closed many longs very profitably, and with hedges held firmly hand, I’m ready for the coming storm while sticking with the stated plan of buying only reality, and there’s nothing more real in the late stages of speculative mania - with Big Bro’s socioeconomic engineering and dollar-destroying fiscal fantasies fuelling the doomed debt spree - than hard assets; commodities, energy, and gold.
In the past I’d stated there’d be 10 “one and done” sector ideas, however…
11. Copper and Basic Materials
A basket, with equal 1/3 weighting in CPER, UYM and COPX.
Strategy: long term holding, doubling or tripling the position at much lower prices if a material market drop occurs.
CPER - United States Index Copper Fund
CPER closed Tuesday at $23.70
Info link: https://www.uscfinvestments.com/cper
Overview: The United States Copper Index Fund® ("CPER") is an exchange-traded security. CPER's investment objective is for the daily changes in percentage terms of its shares’ per share net asset value (“NAV”) to reflect the daily changes in percentage terms of the SummerHaven Copper Index Total ReturnSM, less CPER’s expenses. CPER is designed to be a convenient, cost-effective way for investors to access the returns of a portfolio of copper futures contracts. CPER is listed on the NYSE Arca.
Its holdings:
UYM - ProShares Ultra Materials
UYM closed Tuesday at $23.24, currently paying a 1.21% dividend yield.
Info link: https://www.proshares.com/our-etfs/leveraged-and-inverse/uym
Overview: ProShares Ultra Materials seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the S&P Materials Select Sector Index.
Holdings:
COPX - Copper Miners ETF
COPX closed Tuesday at $34.47, currently paying a 2.27% dividend yield.
Info link: https://www.globalxetfs.com/funds/copx/
Overview: The Global X Copper Miners ETF (COPX) provides investors access to a broad range of copper mining companies, seeking to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Copper Miners Total Return Index.
Holdings:
Headlines:
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California Landscapers Brace For Gas-Powered Lawn Equipment Ban
Many more energy-sucking policies taxing an electric grid already strained to the breaking point. Higher prices curbs demand, while the only solution at a mass scale is nuclear energy powered by uranium.
The buy now, pay later holiday debt hangover has arrived, as consumers wonder how they’ll pay bills
Utility Bill Debt For Americans Hits Record As Heating Homes Now Seen As Luxury
US Seeks to Jump-Start Production of Higher-Energy Uranium Now Made in Russia
World’s Biggest Uranium Miner Warns of Production Shortfall
Kazatomprom, the world’s biggest uranium miner, warned that it’s likely to fall short of its production targets over the next two years, adding another risk to supply as demand for the nuclear fuel rebounds.
The London-listed company, which is controlled by Kazakhstan’s government via its sovereign wealth fund, said on Friday that shortages of sulfuric acid and construction delays at newly developed deposits are creating production challenges that could persist into 2025.