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“Metals Market Ignited by Bold Poker Strategy”

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Hello, Reader.

Picture this: you’re at a casino engaged in a Texas Hold’em cash game. The competition comes down to you and a daring player known for throwing others off their game all night.

Your opponent goes all in with two kings, pushing $200 into the pot and inflating it to a total of $2,000.

You feel a knot in your stomach. The community cards show J-Q-K-5, giving him three-of-a-kind – a formidable hand. He combines two of his kings with the communal king for a strong finale.

What’s evident here is that poker involves complex strategies. The best professional players do more than just calculate odds; they carefully observe others, adjusting their strategies accordingly. This is why top players often seem to have a sense of everyone else’s hands.

The same principles apply to global macroeconomic investing.

Successful global macro investing requires you to observe and process all relevant data points, not just select ones, and derive logical conclusions from them. This intricate dance demands not only detail-oriented thinking but also an ability to weave those details into a coherent investment thesis.

Let’s delve into a practical example, guided by InvestorPlace Markets Analyst Thomas Yeung.

In a recent edition of the Fry’s Investment Report, Tom posed a critical question: “Do commodities have a China problem?”

Chinese economic data had been inconsistent, leading to predictions of a downturn in the commodity market. Tom pointed out that since China accounts for over half of global copper exports and two-thirds of soybeans, this outlook seemed justified.

However, Tom argued that this kind of simplistic supply-and-demand analysis overlooked potential interventions from the Chinese central government. These unexpected moves reflect the strategic “raises” and “bluffs” utilized by the world’s top economic players. He elaborated…

UBS cut its 2024 Chinese GDP growth target to 4.6% this week, down from earlier forecasts of 4.9%…

That means more fiscal stimulus is probably on the way. We expect the Chinese government to focus on the real estate sector, given cooling in prices and better fiscal restraint by large developers. The central government had previously announced GDP growth targets of “around” 5%, and the slowing housing markets will make it the most tempting lever to pull.

Recently, the Chinese government implemented just such a strategy. The central bank not only cut interest rates but also took steps to reduce mortgage costs. This move is estimated to save 50 million households about $21 billion per year. The Federal Reserve’s recent interest rate reduction paved the way for these expansionary policies without destabilizing the currency.

This shift triggered a renewed surge in commodity prices, especially those linked to construction. Since September, copper and aluminum prices have risen between 3% to 10%.

Tom successfully interpreted China’s economic signals, a move that proved beneficial for his investments!

This positive outlook is also reflected in my recommendations in the Fry’s Investment Report. One of my copper producer investments, which incorporates AI technology, surged 22% in September. Since my initial recommendation of this company in 2020, it has skyrocketed nearly 300%!

Moving forward, I remain optimistic about commodity stocks. For more details on the companies I endorse in the Fry’s Investment Report, click here to explore membership benefits.

Now, let’s recap what we featured this week at Smart Money.

Smart Money Highlights

Artificial Intelligence: A Conversation Missing from Recent Debates

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While recent presidential and vice-presidential debates have barely touched on artificial intelligence, the real world is buzzing about it. The emergence of Artificial General Intelligence (AGI) is around the corner, underscoring the importance of staying informed. Click here to learn more about AGI and its emerging opportunities.

A Focus on Self-Driving Cars and a Major Investment Opportunity

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In 1994, a young Microsoft product manager named Rich Barton made a bold suggestion to Bill Gates and his team: What if we moved travel booking to the internet? This innovative idea led to the creation of Expedia. Today, as Tesla prepares to enter the autonomous vehicle (AV) market, a similar opportunity could arise. One company is poised to gain significantly from this shift. Continue reading here.

Getting Ahead of Elon Musk’s Robotaxi Launch on 10/10

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The era of Autonomous Vehicles is upon us. In a recent piece, Luke Lango shared his firsthand experience with Waymo, the self-driving branch of Alphabet. While Waymo is advancing rapidly, it isn’t the only player reshaping the future of transportation. As self-driving cars gain traction, investors might discover numerous opportunities for significant returns. Click here to read more.

Understanding the Two Types of Self-Driving Technology

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Understanding how self-driving vehicles function is crucial for investors looking to capitalize on this megatrend. Central to this technology are two components: the “hardware stack,” which includes various sensors, and the “software stack,” equipped with artificial intelligence. Together, they enable vehicles to make complex decisions. For a deeper dive into these technologies, click here.

Anticipating the Future

Recently, we’ve focused on autonomous vehicles at Smart Money.

On Thursday, Elon Musk plans to unveil Tesla’s robotaxi during the “We, Robot” event. This vehicle will be fully automated—no mirrors, pedals, or steering wheel required.

According to tech expert Luke Lango, this revelation could propel the stock of a lesser-known supplier to potentially increase by 20 times. Click here for more information in the complete video report.

This week, we will continue exploring this topic and provide insights on how to benefit from the growing interest in autonomous vehicles.

Regards,

Eric Fry

Editor, Smart Money

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