It was an unpopular call at the time…
In September, I told Disruption Investor members:
“The evidence is overwhelming: Inflation is peaking. History tells us stocks usually bottom and move higher when inflation starts falling. That means the time to buy is now.”
US stocks bottomed a few weeks later and rallied 22% from their lows:
Today, I’m making another call. This one has “longer legs”... and by making the right moves today, you could set yourself up for big gains over the coming decade.
- Get ready for one of the greatest investing manias in history...
“Mona Lisa left unharmed but smeared in cream in climate protest stunt”—Reuters
You’ve surely seen activists gluing themselves to walls and throwing cans of tomato soup at famous artworks. Pink-haired communist kids aren’t the only ones obsessed with saving the planet.
Politicians and bureaucrats have declared holy jihad against climate change, too.
It doesn’t matter whether you think this is the most important issue in the world or a hoax.
What matters is everyone from the UN… to the US government… to Apple (AAPL) will spend more money on “green” initiatives than they’ve ever spent on anything over the coming decades.
The “Race to Zero”—politicians’ rallying cry to halve global emissions by 2030—will be the dominant investing theme for the rest of this decade.
It’s already the driving force behind many of today’s fastest-growing trends.
Every house in my neighborhood is getting solar panels installed on their roofs. And the amount of solar power installed in the US is going parabolic:
I’m sure you’re seeing more and more Teslas on the roads...
In fact, electric vehicle (EV) sales hit record highs last year. They’re on track to jump another 30% in 2023:
Mark my words: The “Race to Zero” will be one of the greatest investing manias of all time.
It will top the 1990’s dot-com craziness, during which time many internet stocks soared thousands of percent.
Greedy investors and Wall Street opportunists won’t be the only ones driving this bubble. The world’s most powerful politicians and corporations will be involved this time.
I don’t remember world governments pumping trillions of dollars into Microsoft Word during the dot-com heyday!
- “Stephen, are you saying I should buy ‘green’ stocks?”
DO NOT invest in companies making solar panels and battery-powered cars.
That’s the worst way to make money from this disruptive megatrend.
Remember, an enormous amount of “stuff” is needed to power the green revolution.
Take electric cars, for example.
A typical EV requires 6X more materials than an ol’ gas guzzler. There are 180 lbs. of copper and 140 lbs. of lithium under the hood of a Tesla Model S.
Problem is, these materials are in short supply today.
A recent World Bank report stated: “Lithium demand [is] so high, current production would need to ramp up 500%.”
Ditto for copper.
Humans mined a combined 700 million tons of copper over the past 5,000 years. Bloomberg estimates we’ll need to mine the same amount over the next 20 years to meet our current climate goals using wind, solar, and EVs!
- This is teeing up to be the greatest moneymaking opportunity of the next decade.
For the past 10 years, Washington has tried to fix all our ills by revving up the money printer.
Financial crisis… banking crisis… COVID… stock market sell-off… you name it. Print money, problem solved.
Politicians are all in on the “Race to Zero.” They don’t realize we’re running short on the “stuff” needed to achieve their green nirvana.
And try as he may, Uncle Sam can’t print copper or create more lithium by clicking a button.
Shortage of copper? Sure, start prospecting a new mine now and it might be up and running in 2033.
But the biggest winners from the “Race to Zero” will be companies using diggers and dump trucks to pull raw materials out of the ground.
The prices of the “stuff” these miners produce will go through the roof. You’ll be reading news articles about their record profits.
- So, what should you do?
I suggest buying copper miners, like Freeport-McMoRan (FCX). Buy lithium producers, like Albemarle (ALB). Heck, buy Bridgestone (BRDCY), which makes larger-than-life tires for mining trucks.
These stocks aren’t “sexy.” But they will make investors rich over the next decade.
My friends, the “Race to Zero” will dominate the next decade.
I have one more important, non-investing tip for you.
As parents, we try to nudge our kids along the right career paths.
“Why don’t you learn to code and study computer science?” was the boiler plate advice for the last couple years.
We’re going to “electrify” the world over the next decade. EVs will replace gas engines. Kerosene tanks will give way to heat pumps. That means electricians will be in high demand.
In fact, there’s already a major shortage of electricians in every Western country. A recent Wall Street Journal headline read: “America Is Trying to Electrify. There Aren’t Enough Electricians.”
It’s a career your young ones may want to consider.
Stephen McBride
Chief Analyst, RiskHedge
PS: Although the green energy trend will dominate the next decade, there will be plenty of ups and downs along the way. If you’re looking to take advantage and profit from the market’s twists and turns, consider beta testing my colleague Justin Spittler’s new LIVE trading room.
This brand-new service allows Justin to recommend fast-moving trades in real time… so, you’ll always have a shot at capturing the market’s daily moves. If this sounds like something you’re interested in, go here for more details or click the image below.
