Let’s do something slightly different today, shall we?
Specifically, let’s peek behind the curtain and look at a couple of investment themes that we’ve been involved with here at Capitalist Exploits HQ.
Some you’ll probably find surprising, while others less so.
First up, uranium…
URANIUM: IS THE DAM BREAKING?
Long-time readers will know we’ve been in uranium for longer than we’d like to admit — since 2016 to be exact (it was actually one of the first trade alerts we sent out in Insider).
And we’ve done quite well so far (across the board, we’re up about 200%).
Sounds nice at a quick glance. But the reality is there have been multiple nasty pullbacks that would make even the most die-hard crypto zealosts question their faith. We’re talking 30-40% drops, including one just recently.
It’s been a trade from hell. But the fundamentals suggest that investors with the testicular fortitude for bracing these pullbacks will be richly rewarded.
As we suggested back in May when we last talked about uranium here:
Today, we suspect the same thing is playing out once again and we are closer to half way through the current bull market in uranium rather than closer to the end of the cycle. In other words, the greatest risk is getting out too early.
Right now, it seems like uranium is (finally) going mainstream, which would mean the uranium bull market might be on the verge of kicking into high gear.
Consider these developments and headlines just from the past couple of days.
The same banks that were not too long ago pushing the renewable energy hogwash, are now flip flopping and getting behind nuclear.
Then there’s also Nvidia CEO Jensen Huang with a bombshell:
And that’s not the only Big Tech giant flirting with nuclear…
Of course, we’d be lying if we said any of this was part of our thesis when we first got into uranium. But after all the time we’ve spent in this trade, it’s a nice reminder that if you do your homework (and have enough patience to see your thesis fully play out), good things tend to happen.
Wouldn’t it be a hoot if uranium stocks end up being among the biggest beneficiaries of the AI craze?
ARGENTINA: EN FUEGO
Much like uranium, Argentina is another trade we got in (too) early. We first put it on back in late 2021. At the time, nobody outside the country had even heard of Javier Milei, but we did notice something that put the Land of Silver on our radar screens.
As a result of increasingly idiotic socialist policies in Brazil, institutional money started moving out of the country. And Argentina struck us as one of the markets that could ultimately win as a result of this capital flight.
Our thinking was that because Brazil has a much bigger stock market, it wouldn’t take a lot to set Argentinian stocks on “en fuego.”
Which is exactly what happened. Since then, Argentina (in white below) is up about 300% — handily outperforming both the S&P 500 as well as other emerging markets during the same time.
We still think there is a lot of room to run left for Argentine equities (after all, the local stocks are currently trading at 1/3rd the price of the S&P 500) and we’re bullish on the country (so much so that we’re hosting an event there in a few weeks with Mavericks).
The reality is, Milei’s reforms are now only starting to take hold, and it will probably be a couple of years before they will be fully reflected in asset prices.
In the same vein, it’ll be a while before we hear the press of popular opinion expelling the “economic miracle of Argentina” by which time we will hopefully be smart enough to get out of this trade.
Which brings us to the last theme for today (and you might want to pour yourself a stiff drink for that one)…
GREECE: A DECADE-LONG TRAGEDY
Yes, Greece. Don’t say we didn’t warn you.
Ever since the 2008 crisis, Greek stocks were as popular as eating a ribeye steak at a vegan festival.
Here’s a chart of the Athens Stock Market Index we shared with Insider members a while back. The word tragedy comes to mind (somewhat ironically, the Greeks first came up with it many moons ago).
But did you know that Greek stocks have outperformed the S&P 500 as well as the Nasdaq with the Magnificent 7 by some 60% since the start of 2022 (though, that’s probably not something you want to share at a cocktail party — at least if you want to get invited back)?
Something rather bullish seems to be developing in the Greek stock market. In fact, it reminds us a lot of the Argentinian stock market a couple of years ago.
And it looks like we’re not the only investors looking at Greece right now…
Have a great week!
