Second order effects of this incredible and rapid de-globalisation taking place. Did you know (I didn’t) that China and the EU are about 60/40 for global market share of vitamin E production?
Take a look at this breakdown:
EU has 65% of A, and CN/EU/IN split B3 about equally.
China is dominant in:
- 100% for B7, B12, and B9
- 93% for D3
- 90% for B1 and B6
- 85% for C
- 80% for B5
- 65% for K
- 50% for B2
The reason I found this and what makes it important is because BASF just mentioned they may have to shut their German plant because — deep breath — electricity.
If you’re not aware, BASF is a German multinational chemical company and the largest chemical producer in the world. They produce animal feedstock (food shortages anyone) and vitamins.
How Our Fund Is Frontrunning The Economic Madness In 2022 And Beyond
- Copper - Copper prices have to rise to address a huge supply deficit looming on the horizon.
- Shipping - Shipping is vital for the functioning of the modern world, yet is priced for bankruptcy.
- Eastern Europe - Position for the long term trend of capital moving from the West to the East with Polish and Russian equities markets.
- US Dollar - We’re bearish all paper currencies, but believe that the USD will outperform all others.
- Base Metals - Clean energy targets require more battery metals than existing global supply.
- Off Shore Oil & Gas - Offshore oil investment has been smashed, yet consumption continues to grow.
- Rare Earth Metals - A play on geopolitics and a cycle that should see a repricing of these commodities.
- Russion Oil & Gas - Virtue signaling abandonment of fossil fuels led by Western oil co’s means Russia is taking up the slack.
- Uranium - The looming supply deficit promises to pay handsomely when the market inevitably reprices.
- Gold - Gold sees the perfect storm; the turn of a cycle, supply issues, and lack of faith in sovereign currency.
- Coal - Modern society is dependent on coal, with supply continually growing. Is there a more hated investment?
- Personal Defense - Order is breaking down in the US, and the unrest is giving us an opportunity to position for asymmetry.
- Agriculture - Lockdowns and monetary stimulus have ensured food prices will rise, providing deep value.
- Natural Gas - Supply and demand dynamics coupled with dependency from the US provides a great opportunity.
- Plus much much more...
If these themes make sense to you then click the link below to learn more about Capitalist Exploits and how you can play along.