The high-flying stocks are at it again. AST SpaceMobile (ASTS) is up 8%. Hims and Hers Health (HIMS) is up 25% today. Gorilla Technology (GRRR) is up 22%. Soundhound (SOUN) is up 8% (full disclosure, I own some SOUN).
The HIMS stock chart has gone so parabolic, it looks like it could actually go back in time…
The dollar was down a bit today as Trump warned about tariffs. Gold and silver were up. Copper is up a lot.
Copper has gone from $4 to $4.80 a pound in two months. Interestingly, the copper miners haven’t moved much except for Freeport-McMoRan (FCX) which is up 6% today and has broken its downtrend. You could get a quick 20% off as it moves to the top of its range with the idea you sell at $51.
The stock hasn’t done much in four years, but AI will need a lot of copper. Silver is one good up day from blowing out the shorts and going on a moonlaunch above $50. In 2009-2011 the price of silver climbed about 500%.
Risk Premium at Zero
Here is a nice chart that you can add to your worried list. From the Financial Times:
This is a bad thing if you are long equities in the U.S. This chart shows the difference between the forward earnings yield on the S&P 500 and the 10-year Treasury yield. This is a measure of the equity risk premium – the extra amount you expect to be paid to take on the risk of owning stocks versus Treasuries. That risk premium is now below zero.
According to this theory, you should sell U.S. equities and buy T-bills.
The U.S. has never been more expensive in terms of market cap to GDP. Nor in terms of the U.S. markets versus the rest of the world. The PE ratio in Europe is about 13 compared to 25 for the S&P 500. This is why I recommended a Polish ETF (EPOL) in the latest issue of my American Stock Investor newsletter.
At the time it had a PE of 11 and a dividend yield of over 6%. Those numbers are a little more expensive since the EPOL share price has gone up a bit since my recommendation.
Lastly, I’d like to point out the fact that corn stocks are at a generational low.
These low periods correspond with corn prices jumping around 250%. I remember corn prices got so high in 2012 that when I went to a Mexican restaurant the chip prices said “Market Price” like it was crabcakes.
There is a corn ETF (CORN):
It looks like a buy here below $20.50. I’d put a stop in at $17.00 and look to sell it at $49.00.
All the best,
Christian DeHaemer
Outsider Club
AI Titans Across America Are Drooling Over These ‘Weird’ Companies: Read More Here
The Gains Keep Coming:
https://www.outsiderclub.com/sorry-i-said-youd-double-your-money-in-2025-not-in-just-two-months/
Got Gold?:
https://www.outsiderclub.com/gold-hit-an-all-time-high-you-buying/
The Lag-nificent 7:
https://www.outsiderclub.com/the-lag-nificent-seven/
