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Keep an eye on lithium stocks.

With EV demand accelerating, and hopes for a green future, lithium miners could push even higher heading into the new year.

Since July 2021:

• Albemarle (ALB) ran from about $160 to $256
• Lithium Americas (LAC) ran from $13 to $29
• American Lithium (LIACF) ran from about $1.20 to $3.54

Even Ganfeng Lithium (GNENF) just ran from $17 to $20.55 after signing a three year deal with Tesla to supply it with lithium.

However, this may only be the start of bigger moves.

For one, according to Bloomberg, “Global lithium consumption is projected to grow fivefold by end of this decade, according to BloombergNEF. Tightening supplies are sparking a wave of deal making among lithium miners, with Ganfeng and other producers involved in a flurry of acquisitions in recent months.”

In addition, General Motors, for example, wants to increase its spending on EVs to $435 billion through 2035. Ford is targeting 40% EV sales by 2030. Volkswagen is investing billions in EVs. Countries all around the world want millions of them on the roads over the next few years.

Unfortunately, none of it may happen – without a good source of lithium.

At the moment, according to S&P Global:

“There is the quadrupling of demand in just five years and probably a growth of six or seven times over 10 years. So, clearly the industry is not prepared today for that level of demand – the amount of incremental capacity that the industry needs over the next 10 years is at least 1.5 million mt and in terms of capital investment, will probably require $45 billion-$50 billion of investment into new projects or expansions of existing operations.”

With billions, maybe even trillions on the line, the world must secure far more lithium supply.

The post The Top Lithium Stocks to Buy and Hold Long-Term appeared first on Morningology.

Market don’t seem to know the meaning of down these days.

Even with threats of inflation, higher oil prices, poor Q3 2021 GDP numbers, and bad earnings from Apple and Amazon, markets are pushing to higher highs. At the moment, Dow futures are up 147 points, as the NASDAQ tacks on about 56. The S&P 500 is up 18.

However, the rally could be tested this week.

The Federal Reserve starts its two-day November meeting on Tuesday, where we could hear more about tapering.

“The Fed is part of a global move to remove accommodation, and the market drives right past that,” Bleakley Advisory Group CIO Peter Boockvar said, as quoted by CNBC. “In a way, the stock market is playing a game of chicken, with this inflation move and interest rates and the response from central banks.”

Plus, the House is expected to vote on the infrastructure, social and climate spending packages later this week. Friday also brings the October employment report.

Also, keep an eye on green stocks.

President Biden is in Europe, with plans to discuss the global climate change issue at the United Nations Climate Change Conference of the Parties, or COP26. That could be a major boon for solar stocks, like First Solar (FSLR) and Sunrun Inc. (RUN), wind, hydrogen, and even electric vehicle stocks, like Tesla (TSLA).

“COP26, which was originally due to take place in 2020 but was pushed back due to the pandemic, will see world leaders come together to discuss more ambitious climate action as U.N. researchers warn that global warming is dangerously close to spiraling out of control,” as reported by CNBC.

That’s just some of what we’re watching at the moment. Stay tuned for more.

The post Market Don’t Seem To Know the Meaning of Down These Days appeared first on Morningology.

Just days ago, Morgan Stanley downgraded Steel Dynamics, with a price target of $77. The firm also downgraded the steel sector to In Line, believing steel prices peaked.

All because the “good times are ending,” as noted by CNBC.

Steel companies don’t seem to agree.

In fact, they say the red-hot steel market could extend into 2022. According to The Wall Street Journal, “The extended boom in the $180 billion U.S. steel industry that began last year following the CV-related shutdowns of mills is giving steelmakers more time to bring new plants into service and renew customer contracts at higher prices.”

Plus, steel inventories are still tight, with demand gaining momentum.

It’s part of the reason US Steel, for example, just crushed earnings, with adjusted EPS of $5.36 on $6 billion in sales. Meanwhile, the Street was only looking for $4.87 EPS on $5.8 billion. The company also announced it would buy back $300 million in stock, and hiked its dividend to five cents from a penny.

“We continue setting records, including record net earnings, record Ebitda, record Ebitda margin, record liquidity, record safety, and record quality and reliability,” said CEO David Burritt, as quoted by Barron’s. “Our balance sheet has been transformed and the cash flow generation of the business has us highly confident in our ability to pre-fund organic growth investments.”

Let the good times roll.

The post Steel Market Could Remain Red-Hot Heading into 2022 appeared first on Morningology.

Earlier, President Biden unveiled his $1.75 trillion economic plan.

With a focus on care for families, climate change, access to healthcare, lowering costs for the middle class, and tax reform, the plan still faces an uphill battle in Congress. In fact, progressive House Democrats are skeptical of the plan, and want to see the full legislative text first.

At the moment, here’s what’s in the plan.

For children and caregiving, the White House wants to provide free and universal preschool for all three and four year olds. They also want to expand the enhanced child tax credit, and provide millions of households with up to $3,600 in tax cuts per child.

With regards to climate change, “The plan includes clean energy tax credits for Americans installing rooftop solar panels, an electric vehicle tax credit, tax credits for clean energy production and would create a civilian climate corp. White House officials say the framework Biden is set to lay out will put the US track to Biden’s Paris Agreement goal: a 50-52% reduction in greenhouse gas emissions below 2005 levels by the end of the decade,” as noted by CNN.

That plan is already boosting solar stocks, like First Solar (FSLR) and Sunrun (RUN).

In addition, for climate change, the plan also includes $555 billion in investments and would cut greenhouse emissions by up to 50%. It may also provide tax credits to Americans who buy electric vehicles. In fact, it could provide up to $12,500 in incentives to some families that decide to stop driving gas-guzzling vehicles.

That could fuel even more upside for EV companies such as Tesla (TSLA) and Nio (NIO).

With healthcare, the plan will reportedly lower premiums for millions who buy insurance through the Affordable Care Act. It would also expand Medicare coverage to include hearing services. As for lowering costs for the middle class, it would “extend the expanded Earned Income Tax Credit for about 17 million low-wage workers,” as also noted by CNN.

To help pay for all of this, the President wants to repeal tax rebates, impose surcharge on corporate stock buybacks, and add a surcharge on the earnings of the wealthiest Americans.

Again, the plan does face an uphill battle in Congress.

We’ll keep you updated on what happens next.

The post Top Ways to Potentially Profit from President Biden’s $1.75 Trillion Spending Plan appeared first on Morningology.

Keep an eye on Facebook (FB).

Over the last few days, shares of the social media giant slipped from a high of about $344 to $312.14 on its earnings, and ad spending concerns over at Snap Inc. However, the pullback appears to be overkill, as RSI, MACD, and Williams’ %R collapse into oversold territory.

For one, earnings weren’t terrible.

Revenue came in at $29.01 billion, which was short of expectations for $29.45 billion. However, FB did beat on earnings, which came in at $3.22 as compared to expectations of $3.17. The company also saw a 12% jump in monthly active users to 3.58 billion, as compared to expectations of 3.51 billion users.

Two, according to Mark Mahaney, head of Internet research at Evercore ISI, as quoted by CNBC, the company had prepared itself for the advertising changes from Apple.

“Snap disappointed people last week and Facebook just did, too. I’m struggling to recall the last time that Facebook missed revenue and lowered revenue estimates like this. The good news is, however, that unlike Snap, Facebook management told people about this IDFA [Identifier for Advertisers], this Apple risk, they’ve been talking about it for a year, and then the stock got slapped down because of that, slapped down because of the Snap results and so the risk-reward wasn’t nearly as … tilted as it was for Snap.”

Three, according to MKM Partners analyst Rohit Kulkarni, “The tone of the management team, outlook for 4Q, and the new disclosures that they’re going to do with Facebook Reality Labs, plus the buybacks…add to a pretty thick silver lining in my opinion,” as quoted by Yahoo Finance. “When you look beyond the Apple headwinds into 2022, Facebook is going to give you more disclosure, going to buy back more shares, and obviously they are going to disclose that the core business is generating a lot of cash.”

Also, the company just announced it’s adding $50 billion to its buyback program.

In short, investors may want to use the current FB crisis as a long-term opportunity.

The post It May Be Time to Buy Shares of Facebook on the Pullback appeared first on Morningology.

Gas prices aren’t cooling off.

Last checked, crude was up another 41 cents to $84.17 – and could run back to $100+.

Worse, according to President Biden, “My guess is you’ll start to see gas prices start to come down as we get by and going into the winter, I mean, excuse me, next year, going into 2022. I don’t see anything that’s going to happen in the meantime that’s going to significantly reduce gas prices,” as quoted by CBS Baltimore.

While some blame OPEC’s failure to boost oil production, others blame President Biden, who canceled the Keystone XL Pipeline in his first few weeks in office.

Supply-demand issues aren’t helping.

For one, markets are going to remain under-supplied for quite some time.

Meanwhile, analysts believe oil demand will go back to – and even exceed pre-COVID levels. “Bullish sentiment continues to support oil prices as global supply remains tight at a time when demand is recovering from the pandemic,” said Toshitaka Tazawa, an analyst at Fujitomi Securities, as quoted by CNBC.

Even worse, stockpiles at storage tanks if Cushing, OK are critically low.

In fact, over the last two weeks, stockpiles fell by more than four million barrels to 31 million, and may drop even more on growing demand. The last time supply was this low, oil prices were above $100 a barrel.

“Crude oil could justifiably trade to the next level higher on the storage drought at Cushing alone,” said Bob Yawger, director of the futures division at Mizuho Securities USA, as quoted by Bloomberg. “Forget about fuel switching, whether OPEC+ adds additional barrels, or dollar weakness: if Cushing continues to slide, it could get ugly quickly.”

With prices only rising, it may be time to walk or bike to work.

Or, just close your eyes and pump at the gas station. Prices may only rise.

Or, as we noted last week, take a look at oil dividend-payers:

ONEOK Inc. (OKE) – which pays a yield of 5.74%
Exxon Mobil (XOM) – which pays a yield of 5.48%
Valero Energy (VLO) – which pays a yield of 4.84%
Phillips 66 (PSX) – which pays a yield of 4.42%

The post This is Why We Could See the Return of $100+ Oil appeared first on Morningology.

Nearly $7.50 for a gallon of gas is a bit outrageous.

If any of us had to fill a 12-gallon tank with $90 oil, most of us would be walking.

Unfortunately, that’s the price for motorists in the small town of Gorda, California. The worst part – the next gas station is 40 miles to the north, or 12 miles to the south, says ABC7.

While the rest of the U.S. isn’t dealing with $7.59, we will have to contend with higher prices.

Earlier this week, the average cost of a gallon was $3.30 – up 7.5 cents month over month, and $1.08 higher year over year. As of October 21, it’s up to $3.35, according to GasBuddy. The last time it was anywhere near $3.35 was in September 2014.

All thanks to an energy crunch.

“Supply-demand balances show that the market is experiencing a supply deficit, which is spurring deep inventory draws and driving prices upwards,” said Louise Dickson, senior oil markets analyst at Rystad Energy, as quoted by Reuters.

“This market tightness is expected to extend into most of 2022, and crude oil demand will only catch up with crude supply by the fourth quarter of next year.”

To profit from rising prices – and even rake in income, take a look at oil dividend-payers:

• ONEOK Inc. (OKE) – which pays a yield of 5.74%
• Exxon Mobil (XOM) – which pays a yield of 5.48%
• Valero Energy (VLO) – which pays a yield of 4.84%
• Phillips 66 (PSX) – which pays a yield of 4.42%

If oil prices are going to rise, you may as well own the red hot oil stocks, and earn income.

The post $7.50 Gas: Hot Energy Stocks with High Dividend Yields appeared first on Morningology.

Love him or hate him, it’s tough to ignore the impact of Donald Trump on stocks.

At the moment, shares of Digital World Acquisition (DWAC) are up 282% — with volume up to 348 million (compared to daily average volume of 130.513).

All on news of a potential merger that could launch Donald Trump’s social media platform, “TRUTH Social” which will reportedly “stand up to the tyranny of Big Tech.”

Trump added, “We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced,” as quoted by the Associated Press. 

“This is unacceptable.”

In a press release Trump Media & Technology Group, said it and DWAC “have entered into a definitive merger agreement, providing for a business combination that will result in Trump Media & Technology Group becoming a publicly listed company, subject to regulatory and stockholder approval,” as quoted by CNBC.

Plus, if you take a look at the TMTG slideshow, found here, some of the top competitors could include Twitter, Facebook, even Amazon Web Services, Azure, Stripe, and Google Cloud.  Other potential competitors include Netflix, Disney, and iHeart Media, with Trump’s plans to also launch TMTG+, an on-demand streaming service. 

The slideshow also points out Trump had 146.5 million social media followers at one point.

That includes 89 million Twitter follows, 24 million, and 24.5 million Instagram followers.

From here, it’ll be interesting to hear and see the reaction of voters, the press, and those in Congress.  Stay tuned for more.  This could get hot.

The post Trump Effect: Digital World Acquisition Soars 282% on Social Media Deal appeared first on Morningology.

Bitcoin miner, Stronghold Digital Mining (SDIG) couldn’t have picked a better day to IPO.

With Bitcoin at a new all-time high above $66,000, SDIG is up 59% to $30.20. From here, the stock could easily run higher, especially on its green energy news.

In fact, according to the company’s site:

“We wholly own and operate a low-cost, environmentally beneficial coal refuse power generation facility, and it is recognized as an Alternative Energy System because coal refuse is classified under Pennsylvania law as a Tier II Alternative Energy Source (large-scale hydropower is also classified in this tier). We are committed to generating our energy and managing our assets sustainably, and we believe that we are one of the first vertically integrated crypto asset mining companies with a focus on environmentally beneficial operations.”

That’s a big positive, especially with investors seeking environmentally friendly Bitcoin miners.

Helping, the company has already has 3,000 miners, and contracted for 26,150 more. It also has plans to use funds from its IPO to buy another 55,800 mine machines by the end of 2022.

In addition, as the price of BTC explodes on retail and institutional interest, SDIG should follow.

Better, Fundstrat Global Advisors’ Tom Lee says Bitcoin could run to $100,000 this year. Fidelity’s director of global macro, Jurrien Timmer, as noted by Yahoo Finance, says Bitcoin could hit $100,000 by 2023, which should be a big catalyst for mining stocks.

The post New Bitcoin Miner, Stronghold Digital Up 59% on First Day appeared first on Morningology.

Inflation could get much, much worse.

In fact, according to billionaire hedge fund manager, Paul Tudor Jones, as noted by CNBC, inflation is here to stay, and could be a major threat to the U.S. economy.

“I think to me the No. 1 issue facing Main Street investors is inflation, and it’s pretty clear to me that inflation is not transitory,” Jones said. “It’s probably the single biggest threat to certainly financial markets and I think to society just in general.”

Inflation is getting so bad, big companies are saying consumers can expect higher prices at food stores. Already, Nestle, Danone, and Procter & Gamble have warned about this.

While markets seem to have shrugged off the news, that may not be the case for long – especially with its potential impact on borrowing costs, and input costs, while reducing the standard of living. It can also damage earnings growth.

So, how do you protect yourself?

Invest in Cryptocurrencies or Even the Miners

One way is to invest in cryptocurrencies, and even crypto-mining stocks.

According to Paul Tudor Jones, as noted by CNBC, Bitcoin is a great way for him to protect his wealth over the long run. He also believes Bitcoin is a “store of wealth like gold.”

Or, you can buy the cryptocurrency miners, like Marathon Digital and Riot Blockchain, since they benefit from the rising value of Bitcoin, as well.

Invest in the Horizon Kinetics Inflation Beneficiaries ETF (INFL)

The INFL ETF reportedly offers protection in inflationary environments.

“Two areas that you’d be pretty hard pressed to argue against being inflationary over the past decade are higher education and health care,” hence INFL’s top holding, pharmaceutical service provider Charles River Laboratories, said the INFL’s co-portfolio manager, James Davolos, as quoted by CNBC in June 2021.

At $31.50 with an expense ratio of 0.85%, the ETF also holds a position in Franco Nevada Corp., ASK Ltd., Texas Pacific Land Corporation, Viper Energy, CBRE Group Inc., and Archer Daniels.

Since the start of October 2021, the ETF jumped from $29.25 to $31.52 – and could push higher along with inflationary threats.

Invest in Real Estate Stocks, Like Green Brick Partners (GRBK)

Green Brick Partners is a diversified homebuilding and land development company that currently operates in Texas, Georgia, Colorado, and Florida, according to the company’s site.

Greenlight Capital’s David Einhorn also seems to like it as an inflation hedge. “The company has a compound revenue growth rate of 28% and a pre-tax profit growth rate of 44% since its public debut in 2014,” Einhorn said, as noted by Benzinga, “adding that it’s trading at around six times this year’s earnings.”

Since finding double bottom support dating back to March 2021, the GRBK stock is just beginning to pivot higher. From a current price of $23.60, it could test triple top resistance around $28 a share.

The post Interesting Ways to Trade the Threat of Higher Inflation appeared first on Morningology.