I've just arrived in Cebu, Philippines, and there's a lot happening in our portfolio names. Here's a quick update on all you need to know on Sunday night (NY time).
The Federal Reserve
DKI started proposing a controversial thesis a couple of months ago regarding the Federal Reserve. While the market watches the Federal Reserve and follows Chairman Powell's every utterance, I've been saying he no longer has control of the situation. Of course, if the Fed were to drop rates, the market would immediately rise. However, massive Congressional overspending (both parties) mean we're looking at huge amounts of coming currency creation due to monetizing ever-expanding debt. This will lead to future inflation and "higher for longer" interest rates. No matter what the Fed does, we're going to have inflation of the money supply.
The market is starting to realize there's coming dollar debasement (a fancy way of saying expansion of the money supply), and gold has now reached all-time highs. DKI recommended gold (ARCA: GLD) a couple of years ago and the price is up more than 25% since.
Bitcoin and $GBTC
Gold is the traditional alternative to fiat debasement and Bitcoin is the new alternative. DKI recommended Bitcoin (CRYPTO: BTC) a few years ago at about $15k. Bitcoin is typically volatile and has just risen above $40k for the first time since dipping to about $15k in the last year. It's one of the best performing asset classes year-to-date. In addition to Bitcoin, DKI re-recommended $GBTC (OTC: GBTC) below $15 in June. That position has now more than doubled and should be up more when the market opens on Monday.
One of my favorite positions is uranium (OTC: SRUUF). It's up a lot since DKI recommended it, and I haven't sold a single share. Worldwide use is far above production and every year, existing stockpiles decrease. New plants need 3x their annual use when they start operations. Right now, there isn't enough uranium to get the nuclear plants under construction operational. As fuel is a small percentage of the cost of operating a nuclear plant, those plants are going to be bidding higher prices to cover the massive construction costs.
There has been recent news of new potential uranium production in Canada, but it will take years to start bringing on that capacity. In the meantime, the big climate conference started over the weekend, and realizing that nuclear is the best carbon-free energy option, dozens of countries have agreed to TRIPLE nuclear energy production. I anticipate that $SRUUF will be a l0ng-term holding due to an increasingly unbalanced supply/demand situation.
Las Vegas Sands ($LVS)
I had a minor scare this morning (Philippine time) when I got an announcement that Sands China, the subsidiary that holds part of $LVS' Macau (NYSE: LVS) operations was down 13%. It turns out it was just a misprint in the thinly-traded pre-market. As I write this, Sands China is up 3.5% in Hong Kong trading early Monday morning. Please note that $LVS has non-Macau operations so we can not project that price increase to the open in NY in just over 12 hours. However, up 3.5% is a good start to the day, and misprints do happen.
As reported earlier, I was able to attend the Inside Asian Gaming event in Manila last week and the knowledgeable crowd there is very bullish on Asian gaming and Macau in particular.
I have not sold any $LVS stock and have not sold any of the options listed on the Current Recommendations page. Those options expire December 15th so I will be selling them soon. For DKI premium subscribers who want a real-time update on that position, please email me at IR@DeepKnowledgeInvesting.com with the words "LVS Options" in the subject title. I will personally ensure you know what I'm doing in that position as it happens. Of course, any updates to any portfolio positions will always be posted to the premium blog here. As this one is more time-sensitive, we're doing something extra to ensure good communication.
As always, I'm available at IR@DeepKnowledgeInvesting.com for any questions.
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