The world has exited one long-term secular trend and have entered a new long-term secular trend with very different investment implications and economic conditions under our current global system
The cruel paradox is that one might think investing in economically sensitive industries such as oil and natural gas isn’t a good place to be when a recession appears imminent because of an inverted yield curve.
Our economy is modeled on a debt-based system that must always grow. Without growth, we cannot service previous deficits, which is a problem for our overly indebted government.
Uranium’s last major bull market – from 2003 to 2007 – transpired at the same time the Federal Reserve began raising interest rates just like they are today!
Households have more equities as a percent of their portfolio than ever. Is this a good thing or a bad thing?
FMT’s goal is to always put the important pieces of an ever-changing world together to bring you the big picture, and the big picture is that we have entered a long-term stagflationary trend.
Even though the U.S. dollar is losing considerable relevance in international trade and settlement (FX reserves), U.S. asset allocators and the general population remain asleep at the wheel.
The Russian war has thrown a monkey wrench into the world order. It is now not only shining a light on FMT’s fundamental research in these massively undervalued sectors, but it is also catalyzing these assets forward and creating supply issues that are further exasperating their undervaluation.
Inflation is the only answer to deal with these insidious and record national deficits in any reasonable way. Inflation rates might not seem reasonable today, but it is a much better option than a global crash.
Over the last 20 months, the U.S. money supply (M2) has skyrocketed by 40% because our currency was printed into existence unlike at any other time in our history. This catalyzed crypto adoption (digital assets and applications) over the last year-and-a-half in a big way.