A sudden 50% return for Louis Navellier’s free inventory choose… why extra positive aspects are seemingly coming… Jonathan Rose’s subscribers lock in 500%+… do now we have to worry commerce offers?… new AI picks from Luke Lango
Properly, that was quick…
Final evening, legendary investor Louis Navellier held a particular broadcast, highlighting an funding alternative racing towards a pivotal catalyst date.
As a part of the night, he gave away without spending a dime the identify and ticker of one in every of his favourite methods to play the set-up.
This morning, information broke that the Pentagon has develop into the most important shareholder on this firm – and shares surged 50%.
However Louis says that is simply the primary wave of what’s coming. With huge upside remaining, you haven’t missed the lion’s share of the chance.
Let’s again as much as fill in some particulars.
For China, AI, automation, and robotics aren’t non-obligatory – they’re existential
The nation faces two huge challenges which can be forcing a wager not simply on innovation, however on survival by way of know-how…
Economics and demographics.
Starting with economics, right here’s the net journal Geographical:
Revenue disparity stays extreme.
With a median per capita disposable earnings of simply $2,411 yearly, half of China’s inhabitants is successfully poor, whereas roughly 12 per cent stay on lower than $7 a day.
For years, President Xi has tried to transition China away from exports, towards a extra superior financial system based mostly on home consumption. However he can’t due to the information above – the individuals merely can’t afford to spend extra.
Demographically, the scenario is equally difficult. Let’s go to Louis:
The nation’s inhabitants is shrinking, and its workforce is getting older. In the meantime, China’s birthrate is hitting document lows.
Greater than 200 million individuals in China are already over 65. By 2050, that quantity will develop so quick that one in each three residents shall be aged.
That’s a civilization-threatening disaster – and the federal government is aware of it.
So, what’s Beijing’s plan?
Salvation by way of know-how.
China sees AI/robots/humanoids as the important thing to overcoming demographic and financial collapse.
Right here’s the World Financial Discussion board (WEF):
One in each two industrial robots put in world wide is being put to work in China…
Greater than 90% [of Chinese employers] establish AI and 65% establish robots as key applied sciences to rework their group…
The nation is forward of the worldwide common on all of those tendencies, in addition to on seeing the transformative potential of quite a few different applied sciences, from new supplies to semiconductors, biotechnology to quantum computing.
However there’s much more happening right here…
Necessity could also be fueling China’s AI ambitions, however these ambitions received’t cease on the manufacturing facility flooring
China’s management understands that whoever controls the way forward for AI controls excess of simply industrial output. The race for AI dominance is greater than only a technological competitors, it’s a contest for world management.
So, the U.S. and China are pouring sources into AI improvement as a result of the stakes couldn’t be greater…
Whoever leads in AI will form the way forward for financial energy, army functionality, and cultural affect.
Let’s return to Louis:
Fortunately, the Trump administration understands this. That’s why they’ve been quietly placing collectively a nationwide AI technique.
And by July 22, I’m predicting that the administration will reveal its grand technique to the general public…
My analysis signifies President Donald Trump is making ready to go public with a plan to propel America to dominance throughout every thing AI: software program, robotics, self-driving automobiles, information facilities and extra.
Final evening, Louis detailed his imaginative and prescient of Trump’s plan to reshape how America builds, powers, and deploys next-gen AI methods. And on the coronary heart of it – and on the coronary heart of China’s push for technological supremacy – is one factor…
Uncommon earth metals.
Uncommon earth components (REEs) are a gaggle of 17 components that may be troublesome to search out and extract
These components include distinctive magnetic, heat-resistant, and phosphorescent properties that make them important for, nicely, the following era of nearly every thing:
- Tomorrow’s AI developments: AI depends on highly effective {hardware} parts like GPUs and ASICs, which use uncommon earth components like neodymium for magnets in cooling methods and motors, and gadolinium for warmth resistance…
- Shopper merchandise: They’re wanted for all of your favourite tech-products reminiscent of good telephones, computer systems, electrical automobiles, LED lights, flat display TVs, you identify it…
- Nationwide protection: REEs are important for wide selection of protection functions, together with plane, submarines, missiles, and radar/sonar methods. You’ll discover them in every thing from magnets that energy electrical motors and actuators in fighter jets, to lasers, to steering methods in missiles…
- Quantum computing: REEs reminiscent of ytterbium and europium are getting used to create extra steady and environment friendly qubits, the basic items of quantum data.
Mainly, all our next-gen applied sciences depend on REEs. The issue is that China controls 90% of the world’s refining capability.
Sadly, we are able to’t simply flip a change and start producing REEs. Any authentic home manufacturing (at scale) will take time to stand up and working – until the world’s strongest authorities throws its huge sources on the drawback.
And that brings us to this morning’s headline…
“Pentagon to develop into largest shareholder in uncommon earth miner MP Supplies”
That comes from CNBC.
MP Supplies was the bonus inventory that Louis gave away without spending a dime throughout final evening’s broadcast. Right here’s CNBC with extra particulars on the Pentagon:
The Protection Division will develop into the most important shareholder in uncommon earth miner MP Supplies after agreeing to purchase $400 million of its most popular inventory, the corporate mentioned Thursday.
MP Supplies owns the one operational uncommon earth mine within the U.S. at Mountain Go, California, about 60 miles exterior Las Vegas.
Proceeds from the Pentagon funding shall be used to broaden MP’s uncommon earths processing capability and magnet manufacturing, the corporate mentioned.
The inventory surged 50% this morning.
Now, when you missed this, don’t fear. As I famous a second in the past, Louis believes it’s simply the primary wave of a coming tsunami of giant returns from main uncommon earth performs.
Right here he’s explaining:
The robots aren’t going to construct themselves. They’re not going to energy themselves. They usually’re undoubtedly not going to mass-produce themselves.
That’s the place a handful of small firms are available…
I’ve discovered 5 that I consider are finest positioned to profit from what’s coming.
They’re aligned with the Trump administration’s new AI directive. They’re important to scaling bodily AI. They usually’re sufficiently small to see explosive positive aspects as soon as capital begins pouring in.
To be clear, whereas a fast 50% pop is incredible, Louis believes this development has 500%, even 5,000% potential. As we’ve profiled within the Digest, he’s placing this chance on par along with his still-live return in Nvidia, now approaching 4,000%.
For extra on the general funding alternative right here and the best way to play it, we’re making a free replay of last night’s event available for a limited time.
Backside line: For traders, that is greater than a macro/political story – it’s the axis round which total industries will evolve over the following decade.
The rivalry between the U.S. and China in AI and automation will decide winners and losers throughout chips, software program, protection, power, and infrastructure, and much more.
So, when you’re not positioning around it now, you’ll be reacting to it later.
Louis has firm in celebrating positive aspects from MP Supplies
This morning, subscribers to Jonathan Rose’s Superior Discover service, who adopted his recommendation, banked about 534% on one in every of their MP Supplies name choices.
For newer Digest readers, Jonathan is a veteran dealer who earned his stripes on the Chicago Board Choices Alternate, going toe-to-toe with among the world’s most aggressive and profitable moneymakers. He’s made greater than $10 million over the course of his profession, taking advantage of bull markets, bear markets, and every thing in between.
Now, simply as eye-opening as that 534% return is when subscribers opened this commerce…
Solely three days in the past.
Jonathan nonetheless has a part of the commerce open in expectation of further positive aspects. For extra, let’s go to his replace this morning:
MP shares popped within the premarket after the Pentagon introduced it is going to develop into the corporate’s largest shareholder, investing $400 million in most popular inventory.
That sort of authorities backing is a giant vote of confidence—and the market responded precisely how we hoped — shares jumped greater than 60% earlier than the bell this morning and now we’re locking in income on the $34 calls…
Let’s take income right here, maintain our $37 requires now and see how far this journey will take us.
What a commerce! We’ve nailed this inventory on each side of the motion — that is what I imply once I say The Inventive Merchants Wins!
A much-deserved “congratulations” to all of the Superior Discover subscribers, in addition to to Jonathan, who’s the most effective within the biz.
Lastly, although not a 500% return, I’ll add that we flagged MP Supplies for you in our December 4thDigest. The inventory is up 91% since then. But when Jonathan and Louis are proper, extra short-term buying and selling and longer-term investing income stay forward.
Is that this bull market in bother now that President Trump has reignited the commerce conflict?
As I write Thursday, President Trump has despatched letters to no less than 22 totally different nations, dictating new U.S. tariff charges. They vary between 25% and 50%.
However whereas Trump’s Liberation Day tariffs resulted in a market meltdown, the market has principally shrugged off this newest batch of levies.
For the reason why and what comes subsequent, let’s go to our hypergrowth skilled Luke Lango. From his Innovation Investor Every day Notes:
Let’s name it what it’s: political theater.
- The letters Trump is sending to world leaders about tariff charges? Posturing.
- The arduous deadline? A negotiating tactic.
- The purpose? Safe offers by August and put the tariff saga to mattress.
That is basic Trump: create chaos, then declare victory. We’ve seen it earlier than. We’ll see it once more.
Luke’s base case is that commerce offers will occur with the common U.S. tariff charge to land close to 10%. Whereas that is up considerably from ~2.5% in 2024, Luke says it’s nonetheless manageable:
Traditionally, a transfer to 10% would shave ~1% off GDP and add ~1% to inflation.
Modest harm, counterbalanced by tax cuts, robust spending, and the AI productiveness growth.
Nonetheless, there’s one factor that Luke suggests we regulate – confidence.
He highlights the June NFIB Small Enterprise Survey that reveals confidence is stalling. Value-hike plans are rising. And whereas Might seemed like a restoration from April’s tariff shock, June reversed the development.
So, the resilience of the patron is again within the highlight, which makes it all of the extra vital that buyers keep away from tariff-related sticker shock.
However Luke believes we’ll keep away from such a shock. Right here’s his backside line:
We’re not betting on breakdown — we consider in EACO: Everybody At all times Chickens Out.
International economies are too linked to threat a meltdown. We anticipate commerce offers to get completed — and markets to rally arduous as soon as they do…
Our technique: ignore the drama, purchase the dips, and place for a second-half breakout.
So, what’s Luke shopping for?
You already know – AI.
Whereas Luke has already profiled some ways to put money into AI, his newest suggestions ties in with Louis and the China/AI race that opened right this moment’s Digest.
Right here’s Luke:
Capital is coming residence. Infrastructure is being constructed.
AI goes home.
That’s rocket gasoline for an American AI Increase. So, what’s the transfer?
You don’t have to chase each bounce or time each dip. As an alternative, what you ought to be doing is constructing your AI inventory watchlist and on the lookout for entry factors as worry creates alternative.
Deal with:
- Semiconductor leadersreshoring U.S. manufacturing (assume NVDA, AMD, TSM companions).
- AI software program firms(like PLTR, AXON, META, MSFT).
- Superior manufacturing performsin packaging, testing, and thermal methods (reminiscent of SNPS, COHR, AMAT).
For traders watching AI stocks carefully, this reshoring wave alerts a possible multi-year uptrend.
(Disclosure: I personal AMD, MSFT, SNPS, COHR.)
Luke is very centered on humanoids proper now. You may try his latest free research video on the topic right here.
We’ll maintain you up to date on all these tales right here within the Digest.
Have a very good night,
Jeff Remsburg
