Elon Musk puts a billion potential customers in | Australian Markets

Three belongings you need to know immediately…

1) It’s all the time the tales that no one is watching which might be probably the most compelling.

The headlines scream tariffs and trade wars on China and Canada.

What’s Elon Musk doing?

Getting his Starlink business into India!

Have a look at this from CNN…

‘Elon Musk has secured a major win in India by signing two back-to-back deals to bring SpaceX’s Starlink satellite tv for pc web providers to the nation.

‘The country’s high telecoms supplier Reliance Jio, owned by Indian billionaire Mukesh Ambani, stated on Wednesday it had inked a deal with SpaceX.’

That is a genius transfer.

India is the world’s most populous nation. It’ll probably keep that approach for the subsequent century.

Extra importantly, lots of of hundreds of thousands of Indians don’t have entry to fixed broadband.

Starlink might carry web to all of them if it could meet them on price.

It might be an extraordinary boon for the Indian economic system if that’s the case.

A rising India can also be great for the world as a result of it offsets some of the weak spot popping out of China.

Extra importantly for you and me, suppose of what this story means for what our US tech guru James Altucher has been saying in current weeks in regards to the potential Starlink IPO.

This could possibly be the largest of all time if it occurs. What’s Musk doing by pushing into India?

Dangling a big growth carrot for the stock in entrance of the market to help the IPO launch.

In case you thought Starlink was compelling final week, it’s on its strategy to changing into a larger beast now. It’d even eclipse Tesla for influence.

Do make sure you take a look at James’s presentation right here.

The whole lot within the orbit of the Starlink business is primed to shine.

There are 1.5 billion people in India. It’s a gigantic market. And Elon Musk is transferring to own it.

Genius transfer, certainly!

2) I’m going to channel my inside Sherlock Holmes at you proper now…

Have you learnt the well-known dialogue within the following scene?

Gregory (Scotland Yard detective): ‘Is there any other point to which you would wish to draw my attention?’

Holmes: ‘To the curious incident of the dog in the night-time.’

Gregory: ‘The dog did nothing in the night-time.’

Holmes: ‘That was the curious incident.’

We’ve our ‘dog’ in immediately’s market performing curiously.

It’s referred to as copper.

Regardless of tumbling stock markets, Trump tantrums and all of the fears of recession…copper — key industrial metallic — is conspicuously NOT going down.

Test it out during the last six months…

‘Dr Copper’ is alleged to have a PhD in economics. He goes up when he likes what he sees across the world.

However do we have now one other clarification?

It’s this. Defence spending is at file ranges worldwide.

And the copper outlook simply received a increase when the Germans got here out and stated they’re planning a 500-billion-euro infrastructure fund, particularly for revamping the navy.

They’re going to interrupt the shackles of their own debt guidelines to make this occur.

I’ve been on this gig a long time.

I keep in mind when Germany merely wouldn’t budge on these debt brakes, actually for Greece when the eurozone disaster flared over a decade in the past. (About half of Greek pensioners sank beneath the poverty line.)

How instances have modified.

We all know China’s navy spending is growing too. China is second solely to the USA, and it’s going to grow for many years.

All in all, it’s laborious to not be bullish on copper over the medium time period.

I requested my colleague James Cooper, a geologist and mining analyst, for his ideas. He instructed me…

‘War and inflated copper prices go hand-in-hand. That’s as a result of this metallic is used throughout munitions and different navy {hardware}.

‘So, how could this relate to the recent move?

‘Well, Trump threatened to abandon NATO last week. That sent the Europeans into a flurry, for the first time Uncle Sam is NOT offering guaranteed protection.

‘That means there’s a very actual urgency for the EU to increase defence spending.

‘Last week Germany made verbal commitments along those lines stating it take whatever steps necessary to be “the backbone of defence in Europe”. So, who knows, maybe this is another aspect to copper’s current rally.

‘Truth is it’ll in all probability take months earlier than we all know. By then shares can have already priced within the bullish development.

‘That’s why traders needs to be transferring on copper stock now, earlier than these “reasons” begin to floor.’

In January, I beneficial a ripping copper stock to readers of my advisory Australian Small-Cap Investigator.

You’ll be able to see that right here. I’m tremendous pumped for this one. I’m not sure I’ll have a higher thought all 12 months.

3) One more factor on copper…

Copper is important for electric vehicles. Whereas Tesla could also be below the pump, China’s BYD is able to storm the world. Exports are booming.

It’s laborious to not see a repeat of the Japanese expertise right here.

Japan’s low-cost and dependable vehicles captured the world market within the Seventies…and are nonetheless going sturdy immediately. They beat the People by way of innovation.

Trump’s tariffs will make American vehicles much less aggressive in abroad markets as soon as the retaliations begin hitting.

US market veteran Jim Rogers stated it best years in the past when Trump got here to energy the primary time.

Tariffs will ‘Make China Great Again’.

Since Trump apparently has no data of historical past, People will discover this out the laborious approach.

He’s already bleeding US farmers who at the moment are dropping market share and income to Brazil.

However hey, the Gulf of Mexico is now referred to as the Gulf of America. That’s fairly cool for People, proper?

Greatest needs,

Callum Newman,
Editor, Small-Cap Methods and Australian Small-Cap Investigator

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Don’t catch the falling knife

It may be tempting to buy a stock that has fallen a long approach. Particularly whether it is a former market darling that you just had been wishing to procure years in the past.

I despatched out a warning in Closing Bell in Might final 12 months to say that I assumed iron ore was about to get hammered. Fortescue [ASX:FMG] was trading round $24.50 on the time, and I stated it will fall to at the least $20 and maybe decrease.

At the moment FMG is trading beneath $16, so the query needs to be requested — is it time to buy?

FMG is trending down fairly sharply, so I feel it’s best to attend till there are indicators that the downtrend could also be over first.

There’s a main low set in late 2021 close to $14. I reckon there will probably be lots of stop losses lined up beneath that stage.

If iron ore falls beneath US$100/t again and basic market situations proceed to deteriorate, FMG might take a look at the waters beneath that key $14 stage.

A panicked period of promoting after that stage is damaged might take the price all the best way down to $10 or so.

I’d begin licking my lips if that occurred after which I acquired a buy signal.

Regards,

Murray Dawes,
Editor, Retirement Dealer and Fats Tail Microcaps