If you could ever see a solidly moving trend, it is now.
💻 A TECH, OR NO A TECH?
Staying with China another time … sometimes knowing where not to be is as important as knowing where to be. After all, all investments are a matter of costs and chances of opportunity. That’s why we’ve been curiously watching the implosion of Chinese technology stocks.
How we exposed it to the most recent issue of Insider Weekly:
The question of the regulation of Chinese technology has been going on for months, but the big question here is what the price is.
What about long-term vision? Is American technology better?
In an earlier issue, he said that American technology manipulates and owns the government, while in China the government manipulates and owns Chinese technology.
That the two are as divergent as they are is potentially important rather as a crack in the armor of “growth,” to be honest, American investors have been buying Chinese technology as if it were the same as American technology. . Obviously not. But the other question worth thinking about is what do American tech investors not know about American technology? Still or should they trust them to the extent that they do?
Well, you know my answer to that, but really what I think doesn’t matter because what the market thinks is what matters, at least for now.
⛏️ THE BAD BOY OF MINING
Right now there is no better place than copper. If you’ve been following us for a long time, you’ll probably know that the world needs a lot more copper. And fast. The problem, though, is that we don’t find it fast enough.
And he found a way to partner with one of the best operators in the mining industry (with a long history of making money for investors), in a deal he calls “Black Sheep Project”. Are you curious to get more information? You can read Jamie’s thoughts on the deal here.
🚀 ROCKETS: THE NEW SKYSCRAPERS?
Aside from all the men’s symbol jokes (yes, what a weird-looking rocket), we think this is just a giant opposite sign. Tell us old-fashioned, but why the obsession with going to space? Isn’t that what man did about 50 years ago?
It reminds us of the construction of the tallest buildings in the world and how they have often coincided with the best markets in their respective cities and countries. Another analogy would be the big mega mergers and acquisitions. Simply put, at the height of market cycles, hubris get started and people become silly.
🤑 PENNY FOR YOUR COAL MINE
If you need more evidence of how global investors view coal as toxic waste (not just from the Western Woke variety), Reuters reports that the number of bids for more than 70% of India’s coal mines auctioned was a zero fat:
India did not receive any bids for 48 of the 67 mines for sale as part of its plan to open coal mining to private companies, reflecting investors’ reluctance for a sector clouded by concerns environmental and low margins.
Prime Minister Narendra Modi last year offered financial incentives to the private sector and removed restrictions on the end use of fuel in an attempt to reduce imports and turn India into a net exporter of coal.
India has the fourth largest coal reserve in the world and is the second largest consumer, importer and producer of coal.
It’s a reasonable bet that these companies have enough value to buy these (and other) coal assets to probably buy them for “cents”. We have been taking note of who buys coal assets, not only in India but globally. One of these (which we recently highlighted in Insider) is Vedanta. These companies will buy bargains, especially if it is to wake up companies that download to achieve what is politically acceptable.
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