Dave is a geologist, mining entrepreneur, and seasoned speculator.
And as he’s been showing his readers, we’re moving from a world powered by oil, coal, and natural gas… to one powered by fuels that don’t drive climate change.
We’re also shifting away from cars and trucks powered by internal combustion engines… to electric vehicles (EVs).
That means a surge in demand for the metals that go into rechargeable batteries – particularly lithium.
It’s what allowed Dave’s Strategic Investor readers to close out a 194% gain last week on a major player in the lithium mining business.
And as you’ll see in today’s mailbag below, the thank-yous have been pouring in.
But don’t worry if you’re not a Dave subscriber and you missed this trade. As you’ll see today, it’s just the start of the gains for this energy-transition trade.
If you’re with us for the first time, it means you recently signed up to one of the 21 investment advisories we publish at Legacy Research.
Our mission at the Cut is to make sure you never miss a big moneymaking idea from Dave, Teeka Tiwari, Jeff Brown, Nick Giambruno, and the rest of the Legacy team.
We’re dedicated rabbit-hole divers.
When one of our analysts spots a market megatrend in its infancy, we find out as much as possible about it. Then we share those findings with you, in an easy-to-follow way.
Our ultimate goal is to help you achieve financial freedom. As Teeka puts it, to make a fortune without already having a fortune to invest, you need to identify massive trends early… and stick with them.
I (Chris Lowe) first put the opportunity in lithium on your radar in the December 13, 2018, dispatch.
It was a no-brainer.
As Dave had been showing, you can’t have EVs without rechargeable batteries. And you can’t have rechargeable batteries without lithium.
It’s not just the EV trend that relies on lithium. Every device with a rechargeable battery does as well. Even 5G towers require lithium batteries. Old lead-acid batteries aren’t powerful enough.
And this all relies on lithium and other metals we dig out of the ground. Without them, these batteries couldn’t hold a charge.
The Global X Lithium & Battery Tech ETF (LIT) tracks a basket of stocks in the lithium sector.
It’s up 184% since I first wrote to you about it just under three years ago.
That’s 2.6 times the gain for the S&P 500 – our stand-in for the U.S. stock market – over the same time.
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That sounds impressive. But it took almost three years to play out.
Dave just closed out an even bigger gain on a single lithium mining stock recommendation at our Strategic Investor advisory in just over a year.
If you’re not a Dave subscriber, you may not have heard of it. But Albemarle is the only lithium miner in the U.S.
As Dave explained it to our Strategic Investor folks when he recommended it…
Albemarle controls the Silver Peak lithium mine in Nevada. That’s currently America’s only source of this key metal. Silver Peak is considered so strategic that the U.S. Geological Survey keeps data on this mine secret. Production from the survey’s most recent yearly lithium report is simply noted as “W” – withheld for security reasons.
Having a mine based in the U.S. is a major advantage. Dave again…
Tesla (TSLA) and other American EV makers need a lot of lithium to feed manufacturing plants. They don’t want to rely on imports that can get interrupted at the drop of a hat. Albemarle has homegrown production to sell to them.
It’s why Dave recommended our Strategic Investor readers scoop up shares in Albemarle to profit from the energy transition.
This summer, we saw wildfires rage through Arizona, California, Colorado, Idaho, Minnesota, New Mexico, Oregon, Texas, Utah, and Washington.
Outside the U.S., wildfires blazed in Algeria, Argentina, Australia, Canada, Cyprus, France, Greece, India, Israel, Italy, Russia, South Africa, and Turkey.
We’ve also seen flash floods in China, Germany, and Japan… record heat in the Arctic… and freak frosts in Brazil.
And a United Nations report out last month warned that we have a decade to complete the energy transition… or catastrophic global warming is inevitable.
Now, I know some readers are skeptical of the climate change debate. But as investors, it’s still worth paying attention to.
Even if you don’t agree that climate change is manmade… governments and corporations all over the world are about to throw trillions of dollars at cutting down on fossil fuels.
So fleet electrification… and a continued surge in demand for lithium… is inevitable.
Dave has locked in profits on Albemarle. But he continues to hold lithium mining stocks in his model portfolio.
If you’re a paid-up Strategic Investor subscriber, you can find the full list of Dave’s recommendations here.
If you’re not already a Dave reader, the next best option is to pick up shares in the Global X Lithium & Battery Tech ETF (LIT).
Just be aware this isn’t a pure play on lithium miners. LIT invests in companies involved in the full lithium cycle – from mining and refining the metal through battery production.
But it’s still a simple way to get some broad exposure.
And keep your eyes peeled for more on this megatrend in future Daily Cut updates from me.
The energy transition is setting up to be one of the most powerful profit trends we track for you.
Regards,
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Chris Lowe
August 30, 2021
Dublin, Ireland