A September Rate Cut Is a Lock, Unless….

Earlier than we dive in immediately, thanks to the 1000’s of buyers who joined this morning’s 10X Breakthrough occasion with our macro knowledgeable Eric Fry.

Eric unveiled Apogee, his first-ever quantitative stock-picking system, based mostly on his 30+ years of investing.

The purpose was to reverse-engineer the particular markers of Eric’s 41 totally different inventory suggestions that went on to return 1,000%+ (to not point out the a whole bunch of triple-digit winners he’s racked up over the a long time). We wished to establish and quantify what they’d in frequent in order that we might discover new 10X candidates.

After 5 years of growth and 5.2 million backtests, we’ve discovered them. In testing throughout 14,000 shares and 31 years of market knowledge, Apogee delivered a 72%-win fee with a mean achieve of 308% on winners.

For those who couldn’t attend this morning, you’ll be able to catch a free replay right here. Past the complete breakdown of Eric’s system, you’ll additionally get the names of five brand-new 10X opportunities Apogee just uncovered – completely free.

Right here’s Eric:

Throughout this morning’s broadcast, I confirmed how I take advantage of Apogee’s 10X Elements to identify potential large long-term winners prematurely.

I additionally gave away 5 “official” suggestions and defined why they’re set to rise 1,000% or extra within the coming years.

Click here to catch it all.

Cool inflation knowledge helps a fee minimize subsequent week

Wholesale costs fell barely final month, taking forecasters unexpectedly.

The Producer Value Index (PPI) dropped 0.1%, far under the estimate for a 0.3% achieve. Bear in mind, this quantity popped 0.7% in July, in order that was an enormous reversal.

In the meantime, August’s year-over-year fee dropped to 2.6%, a noticeable lower from 3.1% in July.

Core PPI, which strips out unstable meals and vitality costs, additionally fell 0.1% towards the identical expectation of a 0.3% rise. The 12-month improve climbed 2.8%.

Mixed with indicators of cooling within the labor market, this softer inflation print all however cements an interest-rate minimize at subsequent Wednesday’s September FOMC assembly – although we have to get via tomorrow’s Shopper Value Index report comparatively unscathed.

Right here’s legendary investor Louis Navellier with what to search for tomorrow. From this morning’s Flash Alert in Growth Investor:

After we get the CPI tomorrow, it’s all going to be about proprietor’s equal hire.

If that cracks, then the CPI cracks. It falls dramatically, and we’re in fine condition.

Now, it’s been declining in current months, as I discussed on Fox Enterprise this morning. It was final at a 0.2% improve. If it could actually get to zero, that might be fantastic. After which inflation is mounted.

Now, many analysts are questioning whether or not subsequent Wednesday will deliver a quarter- or half-basis-point minimize. As I write Wednesday, the CME Group’s FedWatch Instrument places 88% odds on a quarter-point minimize and 12% odds on a half-point.

However Louis says this isn’t a very powerful challenge:

The large information just isn’t a lot the Fed’s fee minimize on subsequent Wednesday. The large information goes to be the dot plot and what number of fee cuts do we now have to come back.

So, earlier than the PPI, Wall Avenue was anticipating three. Now they’re most likely anticipating 4.

So, we will see.

Backside line: Barring a massively “hotter than anticipated” shock in CPI tomorrow, we’re locked and loaded for fee cuts – it’s only a matter of “what number of?”

Capitalizing on AI’s upside, with diminished threat of draw back

We’re dwelling via some of the thrilling moments in market historical past.

Synthetic intelligence isn’t just one other tech development – it’s a full-blown industrial revolution in actual time. The potential fortunes to be made are immense.

For the newest proof of this, take a look at the Oracle’s cloud demand numbers from yesterday’s earnings report…

The corporate reported that it has $455 billion of orders – up 359% from a 12 months earlier. Analysts had been anticipating round $180 billion.

Wall Avenue is a bit dumfounded on the enormity, and Oracle is exploding 40% greater as I write.

However whereas some AI corporations like Oracle will go on to dominate tomorrow’s economic system, loads of others will fizzle out. The query each severe investor should ask is: how can we put the chances on our facet?

The reply might not be in attempting to select the consumer-facing winners. As an alternative, the doubtless safer route is proudly owning the uncooked energy behind AI’s rise.

As we’ve profiled many instances right here within the Digest, AI is unbelievably energy-hungry. Coaching and working these fashions requires a staggering quantity of electrical energy – a lot that the info facilities powering AI are straining the grid in methods we’ve by no means seen earlier than.

Wind and photo voltaic can assist, however they will’t provide the always-on, high-capacity baseload energy AI calls for.

So, what can?

Nuclear.

Final week introduced one other ringing endorsement for nuclear

We already know that the tech giants are turning to nuclear.

Microsoft, Amazon, and Google are backing nuclear tasks, whereas Meta has gone a step additional, signing a 20-year cope with Constellation Power to ensure nuclear energy for its AI operations.

However final week introduced one other ringing endorsement for nuclear – on a rustic degree.

In keeping with Citi Analysis, the markets have dramatically underestimated how a lot nuclear energy and uranium China might be consuming over the subsequent decade.

Let’s go to veteran dealer, Jonathan Rose from yesterday’s Masters in Trading: Live replace:

China’s nuclear growth is so aggressive it should eat one-third of worldwide uranium provide by 2030. That’s a structural shift buyers can’t ignore.

Simply how aggressive will China’s growth develop into?

Right here’s the way it all breaks down…

• By 2026: Imports will rise to ~55M lbs/12 months. That’s practically 30% of world manufacturing.

• By 2030: China will function ~96 reactors. Demand ought to develop to 58–68M lbs/12 months, equaling one-third of the worldwide provide.

• By 2040: The fleet will swell to 170 reactors. From there, demand will simply prime 90M lbs/12 months, or 35–40% of worldwide consumption.

Put all of it collectively – and China is on observe to develop into the uranium whale.

Now, that’s simply the demand facet of the equation. Contemplate provide…

Right here’s Forbes from final week:

Operational issues at two of the world’s greatest uranium mines is crimping provide.

Canada’s Cameco stated it was anticipating a shortfall in manufacturing at its McArthur River mine whereas Kazatomprom, the nationwide uranium firm of Kazakhstan, has downgraded subsequent 12 months’s manufacturing estimates.

The web result’s that the uranium market may very well be hit by a 20-million-pound decline on earlier provide forecasts.

You may play this both as a long-term anchor place in your portfolio or a short-term commerce, which is how Jonathan approaches it.

I wish to cowl extra floor in immediately’s Digest, however for a deeper dive into Jonathan’s particular motion steps, check out yesterday’s free Masters in Trading: Live episode the place he goes into extra element and highlights a few of his favourite uranium picks.

From Jonathan:

From CCJ and UUUU to UEC plus 5 extra – I’ll present you precisely how you can place for uranium’s subsequent leg up.

And if you wish to be taught extra concerning the particular buying and selling technique behind Jonathan’s picks, check out his Masters in Trading Challenge right here.

Our know-how knowledgeable Luke Lango is equally bullish on nuclear

This week, Luke is on the All-In Summit in Los Angeles. It’s an unique, high-profile convention hosted by the 4 enterprise capitalist hosts of the favored All-In Podcast.

He’s reporting his insights and takeaways in his Innovation Investor Each day Notes. Let’s go to Monday’s replace:

Chris Wright (US Power Secretary) delivered a transparent message: get Washington out of the way in which and let nuclear “fly once more.”

The tone was unmistakably pro-permitting, pro-build, and explicitly bullish on small modular reactors.

My takeaway: the coverage wind is shifting from “why nuclear?” to “how briskly can we deploy it?”

That’s constructive for the SMR advanced and broader nuclear worth chain over a multi-year horizon.

In current months, Luke has offered a number of methods to play nuclear, considered one of which has been utility corporations.

For a number of concepts on your personal analysis, think about:

• Constellation Power (CEG): It operates the most important fleet of nuclear energy vegetation within the U.S. to satisfy rising electrical energy calls for from sources like AI knowledge facilities.
• Vistra (VST): It operates the second-largest aggressive fleet of nuclear energy vegetation within the U.S. The corporate considerably expanded its nuclear portfolio in 2023 with the acquisition of Power Harbor.
• NextEra Power (NEE): As the most important producer of renewable vitality from wind and solar, NEE’s nuclear operations are a part of a broader, extra diversified clear vitality portfolio.

And for all of Luke’s nuclear/uranium/AI picks in Innovation Investor, click here.

Coming full circle to the highest of immediately’s Digest and Eric, he’s additionally bullish on nuclear/uranium

Lately, Eric dove into the funding case, confirming our level above – nuclear/uranium is among the finest, longest-legs, comparatively most secure methods to play the AI growth:

This new high-profile demand for nuclear energy from Massive Tech and, earlier than we predict, Synthetic Basic Intelligence, might speed up progress and profitability within the uranium trade.

To capitalize on that potential, I like to recommend investing in what’s turning into one of many “soundest” performs within the inventory market: the uranium sector.

One title on your analysis that Eric (and Jonathan) spotlight is Cameco Corp. (CCJ), It’s one of many world’s largest uranium producers.

It has high-grade belongings such because the McArthur River and Cigar Lake mines that supply vital value benefits over opponents. Plus, it has a 49% stake in Westinghouse Electrical, giving it publicity to the rising demand for “small modular reactors” (SMRs), one of many hottest corners of nuclear.

You can even look into Power Fuels Inc. (UUUU). I’ll word that Eric’s Speculator subscribers made greater than 300% on their UUUU commerce within the spring.

And that brings us again to how we opened immediately’s Digest – with Apogee and the reverse-engineering of how Eric has discovered his triple- and quadruple-digit winners over the a long time. Again, if you missed it, click here to check out the free replay of this morning’s event.

As for nuclear, whether or not you wish to commerce it or purchase it for the lengthy haul, the tailwinds are robust. Give this chance a glance.

Have an excellent night,

Jeff Remsburg