These Assets Could Soon See  Gains up to 200%

Scoop Up These Assets Before the Street Catches Wind

The party has started…

This is a party I told you about many, many months ago. Maybe you remember when I said that oil was going to $150 or more… and when I wrote to you about the commodity super-cycle taking shape… and when I told you to expect rising food prices globally that will play through inflation at home.

At the time, those sentiments were not accepted wisdom at the University of Follow the Leader.

Yet each one of them seemed pretty darn obvious to those of us connecting dots and looking farther out than the next full moon.

And here we are.

Three recent headlines:

• JPMorgan says oil could spike to $150, gets very bullish on energy stocks – CNBC
• Food prices are rising as countries limit exports. Blame climate change, El Nino and Russia’s war – AP
• Commodity supercycle just getting started, could last another 8-15 years – Kitco News

Now, I’m not going to take an indulgent victory lap. We all make right and wrong predictions. That’s life.

Instead, I want to use these three correct calls to underscore a message I deliver from time to time: Being early to the party.

What I mean is that I cannot tell you that X, Y, or Z will happen with any certainty by this day or that. That’s shooting at ducks… blindfolded… at night. Assuming there’s even a duck in the vicinity, maybe you get extremely lucky.

But probably not.

What I’m far better at is hunting ducks, in the middle of duck-hunting season, out on a pond where ducks flock… but which most other duck hunters aren’t even paying attention to.

In short, I’m pretty good at seeing what’s coming and from where. Seeing events that are likely to emerge based on dots—data points—that converge with other dots that might have popped up weeks, months, even years ago. A lot of the financial media I read aren’t very good at the dot-connecting game.

I don’t necessarily blame them. I was part of that cohort for years while at The Wall Street Journal. Deadlines come fast and furious. You don’t have time in most cases to think about past dots when you’re trying to write a story quickly on the new dot that has arrived.

Moreover, finding on-the-record sources who can confirm your thinking for a newspaper story is not always easy when your thinking is futuristic and goes against the mainstream grain.

Best to muck about with your lunacy on your own time.

Of course, when you’re right, you’re right.

Suddenly, it’s no longer lunacy. Everyone is jumping on board and claiming they were thinking the same thing all along.

What I’m getting at is that I like being early to the party.

Of course, that means I’m often here alone, watching as the host is still running around with messy hair, no makeup, and wearing a raggedy t-shirt and paint-splotched shorts as she tries to pretty-up the joint.

In investment terms, that means I’m buying before the rest of the Street sees the fun to come. A lot of the time, they don’t even know a party is on the agenda. The asset’s price—be it stocks or crypto—is still down, and might even have a bit of downside still left.

But the path to the upside is crystal clear.

Meaning I collect those big, meaningful early gains before the rest of Street realizes there’s a party going on over at Mildred’s condo.

Wall Street, by and large, is a lemming farm. No one wants to own some particular stock until they see that everyone else is buying it. Safety in numbers. A member of the cool-kids clique. No one can single you out for being a clown when everyone else is already packed into the clown car with you.

Problem is, most investors buy and sell at the wrong times.

That’s not my assumption. That’s the word from academia, where finance profs have studied this ad nauseum and concluded that the typical investors buy at the top, when all the media are raving about X. Of course, if all the media are raving about X, and you’re hearing about it at a cocktail party or on the golf course or at the Tuesday night bridge club, you’re walking into the party as the smart-money is walking out.

The cover charge you pay is the profit the early arrivers pocket as they leave.

So it is with oil to $150, for instance.

I told Global Intelligence Letter subscribers in March 2022 that the energy industry had scaled back exploratory drilling to such a degree that the result was always going to be oil prices rising to well over $100 per barrel. I don’t really care that Western governments are pushing green energy like a street-drug pusher. 

Global energy demand has been rising faster than green energy’s ability to meet it. That can only mean that demand for oil was always going to outstrip the supply of oil, given that exploration companies have not spent enough in recent years to find and tap new reserves.

Which is precisely where we are today.

Oil demand has surpassed 103 million barrels per day, while oil supply is about two million barrels lower.

Higher prices are the result, which is why barrels of oil that were in the low-$70s this summer are now attacking the $100 threshold again.

It’s also a very big reason why the stock I recommended to my Global Intelligence Letter subscribers in March 2022—global deep-water drilling rig specialist Transocean—is up 66%. Over that same period, the S&P 500 is up about 12.5%.

Which brings me to my ultimate message here at the end: Get dressed, and show up to the party early.

In context of the moment, that means to get out there and start snapping up high-quality banks and real estate investment trusts.

A lots of those stocks have been slammed by the Federal Reserve’s interest rate moves and pronouncements. They’re at bargain-basement prices today.

More importantly, when you connect the dots, it’s very clear that the Fed has little fuel left in the tank to raise interest rates substantially more. They’re going to be cutting sooner than the typical investor—and the typical media outlet—assumes.

And when that happens, interest-rate sensitive assets such as banks and REITs (and crypto) are going to race higher. By the time the financial press starts reporting on this party, those assets are going to be 50%, 100%, maybe 200% higher from where they are today.