President Donald Trump is set to have his delayed summit meeting with Chinese President Xi Jinping next week.
The world is in a different place than the last time the two leaders met.
The removal of Nicolas Maduro of Venezuela has blocked the sale of sanctioned oil to China. The closure of the Strait of Hormuz has led to a similar move.
President Trump is reworking the global order. China still holds some powerful cards, however, including its global dominance of rare earth elements, both in terms of reserves and production:
Rare earth elements are critical components for today’s tech buildout, but are largely dominated by China’s holdings and production. (Source: CCBY)
While China has raised prices on these goods at times, it continues to keep prices low enough to discourage the production of rare earth elements in other countries.
That means despite being America’s top adversary in the 21st century, the metals needed to make smart missiles, drones and other defense tech work are still largely controlled by China.
But much like how the global oil market’s movements have shifted, so too is the rare earth space, albeit at a smaller scale.
We continue to like the commodity space and see plenty of reasons for this sector to take off, possibly as semiconductor stocks take a breather. To get our top play for breaking China’s grip on rare earth element production, see Grey Swan Pro. (See: Shadow Stocks.)
~ Andrew
P.S. This week, Addison is visiting family out in Maine, and I’m at the Consensus Conference in Miami, learning about all things crypto – ideal timing with the Clarity Act moving forward.
So no Grey Swan Live! But we’ll be back to our regular schedule next week.
