The mining boom starters gun has fired. Is this your last chance to ride the commodity cycle to untold riches?

As an Australian, you can easily feel you are missing out on the untold riches being made in the US right now in the A.I trade.

Long time readers of this newsletter are aware that there are a few immutable truths in every 18.6-year Real Estate Cycle for over 220 years now.

One of those truths is twofold: the peak in markets simply cannot come until we are all-in, and that the numbers involved always end up much bigger than the same time last cycle.

Now, in Australia, we have next to no exposure to what’s going on in the US tech sector in our markets.

Which means, perhaps you are rather ambivalent about the chances of things ever going over the top for the Oz market.
Perhaps you should think again!

No real need to say much here. Both stocks are just below their respective all-time high prices. That’s very bullish. The real test will be if a lower high is formed here, or prices do break above the all-time highs and move even higher.

If they do move higher, would there be any real surprise if, say 6 to 12 months from now, both companies announce record high earnings from their multitude of mining operations? Because this type of news is what market makers appear to be pricing in today.

Now, in line with my duties assisting with the daily running of Oakleigh Financials 18.6 strategic Fund and Jupiter Fund I spend an awful lot of time each day reviewing charts and researching the latest trends in markets.

I feel confident saying the following.

Apart from those stocks exposed to the mining sector, there is very little going on to be excited about in the ASX. In fact, you’d make an argument that, like the US stock markets rising on the back of a handful of AI related stocks, a similar dynamic is playing out on the Australian stock market too.

Only it is mining stocks that are doing the heavy lifting.

One of the best rules to follow when you’re investing or trading markets is this; don’t fight the prevailing trend.

And so, the smart money is building their positions in stocks like the Rio’s and BHPs of this world. At least that’s the noise coming from the recent Australian Financial Review Mining Summit recently held in Perth, Western Australia.

Take that earlier quote from Olivia Markham. Here is an excerpt from the same article.

If Markham is right, we will see Australian mining giants such as Rio Tinto and BHP enter a golden era of rising commodity prices and booming demand, leading megadeals that turbocharge their growth in commodities such as copper and turn them into globally relevant stocks.

Traditionally, Iron Ore has been the true driver of mineral wealth for these two companies and Australia in total. What you won’t find much associated with AI data centres however is iron ore. This is why Rio and BHP have diversified. Rio has a suite of opportunities across aluminium, lithium, and copper in countries such as Chile, Argentina, the US, and Canada, all of which want to grow and need capital to do so.

But those same commodities are badly needed for the ongoing green energy rollout, electric vehicle exports, and of course for building out the data centres for the AI revolution.

Have they made the right choice? Look again at their stock charts.

So, dear reader, are you fired up by now! Are you ready to dive in with two feet into what must surely be one of the final bull markets left in the current real estate cycle?

Always ask yourself when you read headlines like the one above “for whose benefit are these headlines for”? Of course, these mining execs want you to believe the story and vote with your wallet. But when you stop and look around you there’s plenty of evidence to suggest that the world today is struggling.

It’s here that the unique pressures historically high land prices are laid bare. And the promises being made aren’t truly reflected in the wider economy.

I’m referring to a K-shaped economy (or K-shaped recovery) which describes a situation where different parts of the economy recover at dramatically different rates, creating a divergence that resembles the shape of the letter “K” when charted.

Or, to bring it to a level you can relate to, an upper arm of wealthy asset owners and high-income individuals benefiting from this “wealth effect” of rising AI and mining stock valuations and who continue to drive outsized retail and discretionary spending.

In stark contrast, the lower arm of low and middle-income consumers battles with persistent inflation, high interest rates squeezing purchasing power, and depleted savings for everyday life.

The above chart shows the dramatic difference between the performance of the S&P500 and the sentiment of consumers who appear to be the ones missing out on this asset inflation. Just today, Fidelity Investments reported a worrying trend of increasing hardship withdrawal requests from 401K accounts. These are the American version of the Australian Superannuation system.

It begs the question of how does this apparent boom for Australian commodity producers stack up against such a dislocation between the haves and have nots here at home?

Here’s another immutable truth when it comes to the 18.6-year Real Estate Cycle. As we approach the peak, the stock market can continue to climb a ‘wall of worry’ as the underlying economy continues to deteriorate. This is precisely the dynamic charts like the one above are telling you.

What truly calls in the final peak then bust though is society needs to be all-in, soaked to the eyeballs in debt, chasing the seemingly endless returns on offer from sectors like AI and select commodities.

So, this leaves you with a stark choice. If history repeats, then you must at all costs avoid being on the wrong side of the trend when this all breaks down. But at the same time there is a window to select, in this case, the most sought-after commodities via investing in the best mining stocks.

It is one thing to sound super bullish at a mining conference. The facts however are that prospecting, developing, and bringing to market a new mine remains one of the most capital intensive and expensive processes out there.

And I can’t help but think just how all these new mines globally can come online without the requisite access to brand new credit. New investors buying up their stocks won’t be enough.

In case you didn’t notice, the cost to service this debt has done nothing but rise higher these last 18 months.

It provides the groundwork for a classic set-up that only the late stages of a real estate cycle can provide.

Are you ready to catch what is arguably the last great wave up in Australian and global mining stocks? Do you know what to look for to seek out the very best opportunities?

Do you know how much time you must do this, and when it’s most likely time to exit and cash in your profits? There is a way to learn both.

It’s via a membership to the Boom Bust Bulletin (BBB). Learn now how the real estate cycle continues to turn and why it can give you the edge in markets by knowing how to ‘time’ the economy.

Through monthly editions and weekly exclusive member only videos that cover all you need to know to teach yourself about the cycle and how it affects commodities, AI, global credit markets, and much more.

I’m not saying the final year or two of the current cycle will be easy. It promises to be volatile, emotional, and at times very tiring for you. What I will say is these mining companies are serious about their expansion plans, even if none of them know their land market timing.

It means the window is now open to partake in this mining ‘boom.’

But thanks to the BBB, you’ll also know the most likely time for when that same window is due to shut too.

Profit and protect: this must become your investment motto today.

So, sign up now.