Hello Everyone,
The secret of success in life is for a man to be ready for his opportunity when it comes – Benjamin Disraeli.
I believe the world is about to break through the limits that have restricted (haunted) humanity since its conception. It will probably come down to the way we see and use four things: energy, intelligence, food production and lifestyle.
Today the whole world would seem to be revolving around the utterances of President Trump, and his belief in his own infallibility. However, it might not be a bad thing if he was to ponder on a couple of observations.
Firstly: “The ancient man who had no concerns about entering a deep dark cave, sight unseen, or leaving the protection of his thorn brush lager to investigate strange noises at night, probably left no descendants.”
Secondly, a quotation from Ecclesiastes: “The swift do not always win the race, nor do the mighty always win the battle, nor do the wise always have the food, nor the intelligent have the riches, or those with knowledge always have success, because time and unexpected events can overtake them all.”
Like so many investors today, I am trying to “pick the bones” out of the Orange Man’s actions and utterances. A difficult task!
I am currently running with the thought that he, or his “friends”, who declared the desire to Make America Great Again (MAGA) will also to some extent include increasing his, and their own, wealth. This could be one of their underlying aims. Nevertheless, if he is successful with MAGA, it will be an enormous achievement, and it will be time to bring out the chisels and add to the faces on Mount Rushmore.
Recently, I have read that the US is sitting on vast mineral reserves that successive governments have failed to exploit due to decades of regulatory deadlock. They are on federal public land, reputed to be worth around $150 trillion, and are downstairs waiting for collection. They have been likened to a “trust that has been sealed off from the public for generations”. Apparently, moves are afoot to break this trust open and release these untold riches. I think that is quite plausible – after all, this is one of President Trump’s great skills – trust breaking!
If he achieves this, and it looks like he might already have done so, then he will be able to monetise this vast sum and I am sure there will be an accounting manoeuvre to let it reside inside the national accounts. Even if the $150 trillion figure is vastly exaggerated, which I expect it is, it could still be a very significant windfall. Imagine what he could then do. Pay down the national debt, reduce personal taxation, invest large sums into industry – in particular the arms and defence industry – fund future A.I. development, rare earth conversion, and battery manufacturing, reduce interest rates and almost certainly be able to retain the US dollar as the world’s trading currency. In addition, it could strengthen his dealings with China and Russia. I agree that this is a long shot, but if it has come about, then American businesses and investment funds will certainly be a home for some of my money.
Last month, Ramaco Resources announced that its Brook Mine had secured the necessary permits to open the first new rare earth mine in the U.S. for over seven decades, and its share price doubled. There is another American company that has been just under the horizon – M.P. Materials Corporation. Recently, the U.S. Defense Department invested $400 million into the company, which is tasked with constructing a huge mineral and rare earth washing facility, along with a massive factory to produce rare earth magnets for use in high-tech consumer electronics, electric vehicles, and critical defence equipment. Apple has also signed a $500 million multi-year agreement with MP Materials. I invested a reasonable sum of money into this company six weeks ago, and it has risen nicely since then. I do not say this to be boastful, but to point out to myself that I must stay alert – as there will be many other such opportunities, if in truth it has become “Open Day” in the federal public lands.
However, if this “buried treasure” is the answer to all his problems, then it does beg the question as to why we have all been on the receiving end of the “will he, won’t he” apply tariffs charade, and at what rate. He will probably pursue the policies of returning manufacturing to America, where it is feasible, and insist that NATO countries finance their own defence and increase the percentage of GDP that is required to do it. On a simple level, this would all seem to make sense if you are an American.
I make no claim to being able to follow and understand what the ramifications of all of this manoeuvring is likely to be, but one would think that the defence industry, artificial intelligence and technology must surely be beneficiaries. Some twelve months ago I invested into HANETF ICAV Future of Defence, Polar Capital Global Technology, and also Rolls-Royce. Since then, these three have performed admirably, and I am sure you will also have found other investments in the same vein.
Moving on to the subject of energy generation. Although I am a great believer in the need for reducing carbon emissions and improving the atmosphere in which we live, I am not convinced by the continual badgering on the subject by academics, media figures, celebrities, and the “look at me” brigade. For instance, how important was it that the United Kingdom reached net zero by 2030 (now put back to 2050), since the UK accounts for less than 2% of the world’s carbon emissions? Yes, sometime in the future – but this unnecessary race has adversely affected the strength of the United Kingdom’s financial situation. It was, however, extremely important to the manufacturers of the solar and wind farms in order to secure their timebound financial subsidies, which had to be paid for by the taxpayer. Even then, our continuous uninterrupted supply of energy (essential for A.I. security) will still be dependent on favourable weather conditions.
There has for many years been an obvious solution to this – and that is to use nuclear fission as the means of generating a constant supply of green energy. The new SMRs (small modular reactors) would seem to be the way to go. They can be factory built, and assembled on-site where they are to be used, all at a fraction of the cost and time of the old-style reactors. There is also the added bonus that surplus energy can be fed back into the National Grid – whatever the weather conditions. Around the world there are already many hundreds of SMRs now on order, with a few already under construction. Unfortunately, it took Mister Milliband nearly ten years to come to this conclusion and place an order with Rolls-Royce – so yet again, for the moment, the U.K. is on the back foot.
I am sure that many of you may already be invested into companies and funds that are involved in mining and storing uranium. A few I have been using are Cameco, Canadian General, Global X Uranium ETF, and HANETF Sprott Uranium Miners – all of which are performing reasonably well at the moment.
For the manufacture of the SMRs themselves, I have been using Rolls-Royce, Oklo, BWX and Nuscale – with mixed success. Again, I am sure that there are many other such companies.
At the risk of repeating myself, this verse seems very apt for these times. Brian Bilston:
The President is above the law,
Russia did not start the war,
It is possible to change a fact,
The world is not round but flat.
The secret of success in life is for a man to be ready for his opportunity when it comes – Benjamin Disraeli.
I believe the world is about to break through the limits that have restricted (haunted) humanity since its conception. It will probably come down to the way we see and use four things: energy, intelligence, food production and lifestyle.
Today the whole world would seem to be revolving around the utterances of President Trump, and his belief in his own infallibility. However, it might not be a bad thing if he was to ponder on a couple of observations.
Firstly: “The ancient man who had no concerns about entering a deep dark cave, sight unseen, or leaving the protection of his thorn brush lager to investigate strange noises at night, probably left no descendants.”
Secondly, a quotation from Ecclesiastes: “The swift do not always win the race, nor do the mighty always win the battle, nor do the wise always have the food, nor the intelligent have the riches, or those with knowledge always have success, because time and unexpected events can overtake them all.”
Like so many investors today, I am trying to “pick the bones” out of the Orange Man’s actions and utterances. A difficult task!
I am currently running with the thought that he, or his “friends”, who declared the desire to Make America Great Again (MAGA) will also to some extent include increasing his, and their own, wealth. This could be one of their underlying aims. Nevertheless, if he is successful with MAGA, it will be an enormous achievement, and it will be time to bring out the chisels and add to the faces on Mount Rushmore.
Recently, I have read that the US is sitting on vast mineral reserves that successive governments have failed to exploit due to decades of regulatory deadlock. They are on federal public land, reputed to be worth around $150 trillion, and are downstairs waiting for collection. They have been likened to a “trust that has been sealed off from the public for generations”. Apparently, moves are afoot to break this trust open and release these untold riches. I think that is quite plausible – after all, this is one of President Trump’s great skills – trust breaking!
If he achieves this, and it looks like he might already have done so, then he will be able to monetise this vast sum and I am sure there will be an accounting manoeuvre to let it reside inside the national accounts. Even if the $150 trillion figure is vastly exaggerated, which I expect it is, it could still be a very significant windfall. Imagine what he could then do. Pay down the national debt, reduce personal taxation, invest large sums into industry – in particular the arms and defence industry – fund future A.I. development, rare earth conversion, and battery manufacturing, reduce interest rates and almost certainly be able to retain the US dollar as the world’s trading currency. In addition, it could strengthen his dealings with China and Russia. I agree that this is a long shot, but if it has come about, then American businesses and investment funds will certainly be a home for some of my money.
Last month, Ramaco Resources announced that its Brook Mine had secured the necessary permits to open the first new rare earth mine in the U.S. for over seven decades, and its share price doubled. There is another American company that has been just under the horizon – M.P. Materials Corporation. Recently, the U.S. Defense Department invested $400 million into the company, which is tasked with constructing a huge mineral and rare earth washing facility, along with a massive factory to produce rare earth magnets for use in high-tech consumer electronics, electric vehicles, and critical defence equipment. Apple has also signed a $500 million multi-year agreement with MP Materials. I invested a reasonable sum of money into this company six weeks ago, and it has risen nicely since then. I do not say this to be boastful, but to point out to myself that I must stay alert – as there will be many other such opportunities, if in truth it has become “Open Day” in the federal public lands.
However, if this “buried treasure” is the answer to all his problems, then it does beg the question as to why we have all been on the receiving end of the “will he, won’t he” apply tariffs charade, and at what rate. He will probably pursue the policies of returning manufacturing to America, where it is feasible, and insist that NATO countries finance their own defence and increase the percentage of GDP that is required to do it. On a simple level, this would all seem to make sense if you are an American.
I make no claim to being able to follow and understand what the ramifications of all of this manoeuvring is likely to be, but one would think that the defence industry, artificial intelligence and technology must surely be beneficiaries. Some twelve months ago I invested into HANETF ICAV Future of Defence, Polar Capital Global Technology, and also Rolls-Royce. Since then, these three have performed admirably, and I am sure you will also have found other investments in the same vein.
Moving on to the subject of energy generation. Although I am a great believer in the need for reducing carbon emissions and improving the atmosphere in which we live, I am not convinced by the continual badgering on the subject by academics, media figures, celebrities, and the “look at me” brigade. For instance, how important was it that the United Kingdom reached net zero by 2030 (now put back to 2050), since the UK accounts for less than 2% of the world’s carbon emissions? Yes, sometime in the future – but this unnecessary race has adversely affected the strength of the United Kingdom’s financial situation. It was, however, extremely important to the manufacturers of the solar and wind farms in order to secure their timebound financial subsidies, which had to be paid for by the taxpayer. Even then, our continuous uninterrupted supply of energy (essential for A.I. security) will still be dependent on favourable weather conditions.
There has for many years been an obvious solution to this – and that is to use nuclear fission as the means of generating a constant supply of green energy. The new SMRs (small modular reactors) would seem to be the way to go. They can be factory built, and assembled on-site where they are to be used, all at a fraction of the cost and time of the old-style reactors. There is also the added bonus that surplus energy can be fed back into the National Grid – whatever the weather conditions. Around the world there are already many hundreds of SMRs now on order, with a few already under construction. Unfortunately, it took Mister Milliband nearly ten years to come to this conclusion and place an order with Rolls-Royce – so yet again, for the moment, the U.K. is on the back foot.
I am sure that many of you may already be invested into companies and funds that are involved in mining and storing uranium. A few I have been using are Cameco, Canadian General, Global X Uranium ETF, and HANETF Sprott Uranium Miners – all of which are performing reasonably well at the moment.
For the manufacture of the SMRs themselves, I have been using Rolls-Royce, Oklo, BWX and Nuscale – with mixed success. Again, I am sure that there are many other such companies.
At the risk of repeating myself, this verse seems very apt for these times. Brian Bilston:
The President is above the law,
Russia did not start the war,
It is possible to change a fact,
The world is not round but flat.
Douglas
Founder
Comments
0 comments
Please sign in to leave a comment.