When the tariffs and trade-wars storyline spooled up, we wanted to bring you more than the usual analyst, academic or lobbyist viewpoint. So I dug into my Platinum Rolodex and dialed up, Mark Rossano — the founder and CEO at C6 Capital Holdings LLC — who’s a private-equity investor, a CFO with cross-border experience … and one of the top experts you’ll find on the supply chain.
I’ve worked with Mark in the past … know him to be a sharp guy and a straight-shooter … and was confident he’d share insights that were truly unique.
Mark delivered. As usual.
In fact, our talk was so thorough — and covered so much interesting ground — that we “sorta/kinda” broke it into pieces. The first half ran Tuesday here in Stock Picker’s Corner (SPC). I thought we’d share the entire interview today. (If you watched Part I, join back in at the 30-minute mark).
The second 40 minutes was as impactful as the first part.
Here’s a rundown on the key topics we covered — including some Wealth Builder opportunities to take a look at:
The “Real Story” of U.S. Employment — You need to understand what’s really happening with employment, unemployment, underemployment and overworked Americans striving to make ends meet. That “real story” includes the impact of “credit-balance inflation” and the consumer debt spiral.
The “Two Scenarios” for the American Economy — stagflation/deflation or a “Lost Decade.” But don’t let that get you down, because we’re also looking at reshoring/deglobalization.
Reshoring/Deglobalization — That’ll play out as inflationary up front — but will lead to long-term opportunity … for American workers and for the U.S. economy. That’s also why, if we end up with a “Lost Decade,” we won’t end up with a “Lost Century.” It won’t just bring home jobs … it’ll bring home high-paying, highly-skilled jobs. And don’t buy into the job-killing, automation myth: Even with automation, Mark says that “will create more resilience in the supply chain … bring better paying jobs back home.”
The “AI Irony” — Artificial intelligence is at the bleeding edge of high tech. So it’s ironic that AI will spur heavy industry — it has to. To build all those data centers, the power grids to electrify them and the high-speed networks to bring the data in and out (see my report on the fiber-optic play Corning Inc. GLW 0.00%↑), we’ll need mines, steelmaking, natural gas infrastructure and shipping. Said Mark: ”A lot of industry needs to be built … beefed up … to meet demand.” All those folks working three jobs in the “Gig Economy” to make ends meet: Call it the “stealth skill set” — since they’ll get skilled jobs — in technology, or even in industrial specialties like welding. (For investors, check out our special report on AI and the power grid).
Why He’s Investing in Hydroelectric Assets — A topic I’m intrigued to delve deeper into in our next visit.
The “Nuclear Reset” in Europe.
The Surprising Rebirth of Shipbuilding in America.
America’s New New Trading Blocs — Why the future of America will be tied to Europe, Southeast Asia, Latin America … and West Africa and the Middle East.
The Unseen Story of the South China Sea — Why it’s not just about Taiwan and militarization.
America’s Upbeat Future — Investors right now look at the United States as a country that can “do arbitrage and invent things.” But it’ll shift to “the power of power … and the grid” — and the importance of heavy industry.” (Check out my report on Hallador Energy Co. HNRG 0.00%↑ .)
Bretton Woods 3.0? — That gold, silver and other commodities may play a big role backing the greenback — and keeping its role as the key reserve currency.
Strategies for Retail Investors — There are lots of opportunities for investors, in Mark’s view, including:
Midstream Stocks — Mark said “oil-and-gas isn’t going away” — and liquefied natural gas (LGP) will remain prominent. Some companies to consider, include: Williams Cos. WMB 0.00%↑, Enterprise Products Partners LP EPD 0.00%↑ and Targa Resources Corp. TRGP 0.00%↑.
Transformers — Honeywell Inc. HON 0.00%↑ (see our SPC Premium report here).
Mining Stocks — Mark sees a big future for “guys doing copper” — which we agree with. Look at miners like Freeport-McMoRan Inc. FCX 0.00%↑ and BHP Group Ltd. BHP 0.00%↑.
The Iran Wildcard — And the interesting possible outcome.
The Long-Game Outcome With Canada and Mexico.
And Gold, Silver and the Blockchain.
Let us know what you think.
And … PLEASE … share SPC with someone important to you …
See you next time;
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