Rare Earth Metals Investing
Plus, TSMC’s CHIPS Act questions.
Today is Monday, April 10, 2023.
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Rare Earth Metals Investing
An investment asset class on the rise is rare earth metals, according to Strategic Metals Invest Founder Louis O’Connor in a new episode of the Early Bird podcast.
Definition: Rare earth metals include those needed for the global energy transition and new technology. These rare earth metals have outperformed precious metals over the past few years because of their high demand and intrinsic value, according to O’Connor.
But: Despite the advantages of diversifying a portfolio with rare earth metals, O’Connor says that the supply and demand of the asset class can't be predicted.
Let’s Get Physical: O’Connor says that owning physical rare earth metals can act as a geographic diversification and there’s good liquidity when you work with an industry supplier.
Final Thoughts: What are O’Connor’s favorite rare earth metals to invest in this year? Find out by listening to a new episode of the Early Bird podcast.
Notable Earnings Today: Greenbrier (NYSE: GBX), Tilray (Nasdaq: TLRY), PriceSmart (Nasdaq: PSMT), iMedia Brands (Nasdaq: IMBI).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: EO2 Concepts (StartEngine), Veebot Systems (StartEngine), GoSun (StartEngine).
Notable Economic Events Today: N/A.
TSMC’s CHIPS Act Government Talks
Taiwan Semiconductor Manufacturing Company (NYSE: TSM) appears to be communicating with the U.S. government about the CHIPS Act.
Details: According to a report from Reuters on Sunday, the chipmaker asked the U.S. government for “guidance” on the subsidies with the CHIPS Act.
Background: Signed into law last year, the CHIPS and Science Act is meant to boost U.S. domestic research and manufacturing of semiconductors. The act includes $39 billion in chip subsidies with criteria that include sharing excess profit with the U.S. government.
But: There are concerns about sharing confidential corporate strategy with the U.S. government. Other foreign chipmakers besides Taiwan Semiconductor have also expressed concerns with the new law.
Stock Price: Taiwan Semiconductor is up 21% so far in 2023. The stock dropped over 35% last year.
Final Thoughts: Taiwan Semiconductor previously agreed to participate as part of the CHIPS Act after it was signed into law. Now, the company wants to double-check the subsidy requirements. With a potential recession looming, the semiconductor industry is at a crossroads. The industry is hoping for a comeback in 2023.
Stacks Continues 2023 Surge
The price of the cryptocurrency Stacks jumped by 7% on Sunday, continuing its upward trend in 2023.
Background: Stacks is the native token of Stacks Network, which is a Bitcoin layer for smart contracts. Since February, the price has jumped thanks to growing hype for its technology.
Price: Since being released to the public last year, the price of Stacks has more than doubled.
Final Thoughts: Stacks will have a big upgrade this year to make it faster, which could help with the price.
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Trends to Watch
Charged and Positive: Tesla to Build New Shanghai Factory for Megapack Battery (Bloomberg)
Coming Soon: Is a ‘Sharp Move’ Around the Corner for Bitcoin and Ether? (CoinDesk)
A Wild Card: Saudi Arabia-Led Oil Cuts Run Into Gusher of Alternative Supplies (The Wall Street Journal)
EV Tailwinds: EPA preparing to release strict vehicle emissions rules (CNN)
Good and Bad: Recession threat may mean stock-market investors no longer see bad news on economy as good news (MarketWatch)
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