Stocks of the Week!

Read time - Quicker than listening to Bohemian Rapsody twice (>7 minutes)

In this email:

• Copper can make you richer than Gold! 💰👀

• Zuckerberg’s Robot Fetish 🤖

• Rich Wannabes Tightening their Gucci Belts 😰

Copper Can Make You Richer Than Gold?! 💰👀

Copper is crushing it right now 📈 

It's not as sexy to look at but YTD it's beaten both Gold and Silver.

“How’s that happened?” you’re asking?

Just like a lot of gains to be had in investing - it's not about where we are, it's about where we're going. And the road we're on looks like it's paved with a bunch of demand for copper.

Think AI 🤖 and electric vehicles 🚗 

Meta are promising to up AI spend & Tesla are promising EVs at even lower price points. Both need a whole bunch of copper for them to keep a) producing & b) keep innovating. And with giants doubling down, they’re indirectly doubling down on how much copper they’ll be needing….

Copper demand isn’t just exclusive to these industries, either.

In fact, demand for copper’s been on the rise for the past 100 years thanks to economic development, especially in emerging markets, with manufacturing.

AI, EVs, and the push for decarbonization, copper’s role is only going to get bigger 🔋 

So what does this copper buzz mean for me & you? How do we actually make money off of it? 

Well if you’re looking to diversify & park some cash into commodities, copper could be the answer. It's a necessity for a bunch of industries that are on the brink of exploding.

And there's a few ways you can get involved - futures, ETF's or stock in mining companies that have a big presence in the copper game like the BHP group

Zuckerberg’s Robot Fetish 🤖

Meta’s plummeted nearly 16% after they announced plans to double down on AI spending. 🤖 

If you want to feel better about any red in your portfolio, Meta's market cap dropped from $1.25 trillion on Wednesday to $1.12 trillion.

That’s $150 billion going missing 🤢

So where’s it gone & why did that happen? 

They beat analysts Q1 expectations which is great but Q2 forecasts didn’t quite hit the spot. 📉 

They've got weaker ad revenue projections. That's a big deal for them because ad spend is their big, fat, juicy cash cow. 🐄🥩 

Now for what could be the 𝙚𝙫𝙚𝙣 𝙟𝙪𝙘𝙞𝙚𝙧 cow in the future.... AI 🤤

They're upping their AI game. Spend on AI is going up from $30-37 billion to $35-40 billion!💰 The goal is to boost their tech & product development and if Meta can position themselves as front runners in this space, it only means one thing for the stock price… 📈

Now if you're veteran investor you'll remember this isn’t the first time Meta stock price has fallen off a cliff after trying something new.

Think back to 2022 with the metaverse shift 🧠 And tell me, what happened after that plunge?

The stock mooned over 140% before this drop. 🌕🚀 

I'm not saying it'll happen again, I'm just saying I've added a little more to my position and it’s already started to fill the gap back up.

If you're in for the long haul, the AI bet could be something to keep an eye on🧐

Rich Wannabes Tightening Their Gucci Belts 😰

You're favourite Instagram influencer isn't popping tags like they used to 🛍️

Just ask Louis Vuitton and Kering.

These luxury giants are seeing a spending slump from "aspirational" shoppers - people who aren't swimming in gold coins Scrooge McDuck style but still splash cash on the finer things here & there 💅

The ultra wealthy are keeping the cash registers ringing, but these brands are feeling the effects of middle-tier luxury lovers closing their wallets & Louis Vee purses 👛🚫 

But just how important are these middle tier buyers? 🤔 

Turns out, it's very. 

Less wealthy shoppers spend about $273.5 billion annually in the fashion world across seven key markets.

For context, that's half the revenue in those areas! 🤯 

And this isn't a recent trend.

In 2023 luxury took a backseat to services. People are all about experiences over things post-pandemic, myself included.

So what does it mean for investors like me & you? And what should we do? 🤔  

We can look for luxury companies that cater to the ultra-rich. Companies like Hermes or Brunello Cucinelli that are still seeing revenue climbing even with the market mood being pretty down-in-the-dumps.

Multi-millionaires & billionaires don't feel the pinch if the gas they put in their Rolls Royce has gone up a little.

If your customer base aren't effected by economic downturn, it's unlikely your company will either.

Robust, reliable revenue = investor paradise ☀️🌴🏖️

That being said, with LVMH around 10% down off of recent highs if inflation cools down, market sentiment improves & people have a bit more cash in their pockets, I can't see a world where they don't continue to succeed.

I've got a little bit of each in the portfolio as a small bet that status chasing never goes away & here for the long haul.

That’s all! See you same time next week 👋 

P.S Hit reply & let me know what you thought of this weeks newsletter. All feedback is welcomed ❤️