The U.S. Falls Behind China in Resource Development

A new economic narrative has started building in recent weeks.

Following the announcement that the Department of Defense would take a stake in MP Materials (MP), a rare earth developer exclusively in North America, it’s clear that the U.S. sees domestic resource development as a key part of national defense.

However, the move, while shaking the small resource market, pales in comparison to the hefty investments that China has been making in the metals and mining space for over a decade:

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China has made extensive global investments in resource developments.

Currently, resources make up about 2% of the S&P 500 by market cap. Even today’s big-name gold miners carry market caps of under $100 billion, and the entire resource space is valued at less than any of the Magnificent Seven names.

But these are the critical physical commodities the world needs. Copper, gold, lead, zinc, uranium, and the rare earths.

This story is just getting started, and U.S. developers may see big moves ahead as the U.S. looks to catch up from a decade of underinvestment as China has moved full steam ahead with resource development.

~ Addison

P.S. With the resource market taking off, we’ve asked Grey Swan Contributor Shad Marquitz, to join us again on Grey Swan Live! tomorrow, July 24 @ 11 a.m. ET.

Shad regaled us last time with a litany of tickers he likes in the natural resource space. We covered rare earth minerals, uranium and nuclear energy, precious metals and building materials.

Tomorrow’s call will give us a chance for another full run down with Shad. He’s very articulate on investing in natural resources. If you’re interested in this overlooked space that’s starting to heat up again, you’ll want to join us Live!

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

A new economic narrative has started building in recent weeks.

However, the move, while shaking the small resource market, pales in comparison to the hefty investments that China has been making in the metals and mining space for over a decade:

Turn Your Images On

China has made extensive global investments in resource developments.

But these are the critical physical commodities the world needs. Copper, gold, lead, zinc, uranium, and the rare earths.

~ Addison

P.S. With the resource market taking off, we’ve asked Grey Swan Contributor Shad Marquitz, to join us again on Grey Swan Live! tomorrow, July 24 @ 11 a.m. ET.

Shad regaled us last time with a litany of tickers he likes in the natural resource space. We covered rare earth minerals, uranium and nuclear energy, precious metals and building materials.

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

Altman’s claim is that not only will people get more done with less with AI, they will be happier because their work is easier and…more fun. This follows a report from Anthropic, responsible for the Claude AI, that said AI increases productivity.

I will say I’m skeptical. But we’ve been told the nature of exponential change is that it comes at you faster than you can measure or observe. And if that is true, it will have consequences in 2026 for employees and investors. Big ones.

For employees–those who are not replaced by automated processes and robots–it will mean secure employment and higher wages. A small number of winners getting richer.

American consumers don’t feel – or are at least unaware of – monetary nuance. They’re just getting the bill.

Trump declared last night that “affordability doesn’t mean anything to anybody,” dismissing the term as a “Democrat scam”— this despite recently proclaiming
himself the “Affordability President” on Truth Social.

That’s the current state of political messaging on cost-of-living: part whiplash, part vaudeville. But voters aren’t confused. Grocery prices are still 30% higher than 2020. Tariffs add daily friction. Utilities, rent, houses, tuition, healthcare continue their daily grind upward.

During a Fed rate cut cycle, bond yields follow, which typically means bond prices tick higher. If you buy bonds now, you’ll be getting in ahead of the crowd.

And if this tech wreck shapes up anything like 2000-01, investors will want to get out fast. Despite the debt mess in Washington, bonds will again look “safe.”

One minor bonus: if you buy now, you’ll lock in higher yields before the next Fed rate cut, which is expected to come one week from today.

But Green is describing more than just a new calculation. He’s talking about a new form of misery.’ It’s a poverty where you may still have most of the accoutrements of middle-class life. But your relationship with the financial elite has changed: you are indentured to the credit industry — for life.

For employees–those who are not replaced by automated processes and robots–it will mean secure employment and higher wages. A small number of winners getting richer.

American consumers don’t feel – or are at least unaware of – monetary nuance. They’re just getting the bill.

During a Fed rate cut cycle, bond yields follow, which typically means bond prices tick higher. If you buy bonds now, you’ll be getting in ahead of the crowd.

And if this tech wreck shapes up anything like 2000-01, investors will want to get out fast. Despite the debt mess in Washington, bonds will again look “safe.”

One minor bonus: if you buy now, you’ll lock in higher yields before the next Fed rate cut, which is expected to come one week from today.