Made in America…
It’s not just a tagline on the inside of a t-shirt.
It is about the biggest investment theme of the next decade.
In short… It is time to bet big on American industry.
You see, for the last 30 years, we have shifted toward a global economy.
We get our fruit from Mexico, sugar from Brazil and coffee beans from Guatemala…
We import airplanes from France, computer chips from China and automotive parts from Japan…
International trade is the norm, not the exception.
But those days could be over…
The Next Economic Megatrend
I believe we are at the early stages of a major shift away from international trade and toward local, domestic goods.
“Made in America” is coming back in a big way.
This isn’t just about t-shirts and toolboxes, though.
I’m talking about multi-billion-dollar supply chains coming back inside American borders…
Over the last two years, we have learned just how fragile our global supply chain is… and just how quickly America can be cut off from the things it needs.
Global Fragility
The first big hint was the 2020 pandemic.
Mining and production came to a screeching halt across the globe.
Almost overnight, we lost access to food, electronics and raw materials we had grown accustomed to importing on a regular basis.
Next was the 2021 Suez Canal fiasco.
A container ship called the Ever Given was stuck sideways in the canal, and much of the rest of the world lost all of its imports for weeks.
When Walmart (WMT) doesn’t get its fish delivery, the grocery store shelves are empty.
When Best Buy (BBY)’s container ships don’t arrive, there are no televisions to buy.
There is also no furniture, produce, copper, semiconductors or any of the thousands of other things we get from overseas.
That was strike two.
Finally, we have Russia’s invasion of Ukraine. That’s strike three.
Russia is the second-largest exporter of crude oil after Saudi Arabia. It also supplies natural gas to a large part of Europe.
Now, the country has been sanctioned and blacklisted from international trade (and rightly so).
Russia is the world’s largest exporter of wheat. It is also one of the biggest producers of iron, nickel, cobalt, platinum and fertilizer.
America’s Comeback
All of these raw materials, which many American companies have come to depend on, are off-limits.
Buying them from Russia is strictly forbidden.
Over the years, these events have shed light on our international dependence in a big way.
And now, our eyes have been opened.
Companies need a reliable stream of materials domestically.
They are sick of dodging an ever-changing landscape of pandemic shutdowns, supply chain disruptions and crippling international sanctions.
American producers are now turning to American suppliers in a big way. And the evidence is clear when you look at the stock market.
Take a look…
The chart above shows the year-to-date returns of US Steel (+48%), CF Industries (+38%), Mosaic (+57%), Teck Resources (+32%) and Intrepid Potash (+72%) versus the S&P 500 index (-3.99%).
Once again, the evidence is clear.
The hottest stocks of 2022 are companies that produce steel, chemicals, metals and other raw materials.
This is the industrial revolution 2.0. And I believe this is just the beginning.
I’ll have more to say about this developing megatrend in the days and weeks ahead, so stay tuned for much, much more.
Embrace the surge,
Ross GivensEditor, Stock Surge Daily
