Dear Reader,
I have been warning you for years.
The tech party is over. We are entering a massive commodity supercycle. Top economists like Steve Hanke are sounding the alarm.
Everyone thinks AI is just digital magic. It isn't. AI requires massive amounts of power, data centers, steel, copper, and grid capacity.
You need to pivot your portfolio right now. Stop chasing digital illusions and start buying hardcore commodities.
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Fake money creates fake wealth. Real money creates real wealth.
Right now, millions of people are pouring their life savings into tech stocks. They are chasing the AI dream.
They think they are going to get rich on digital illusions.
They are walking into a slaughterhouse.
The smart money is already moving. They are pivoting out of tech. They are buying hardcore commodities.
We are entering a new supercycle. And if you aren't positioned for it, you are going to get crushed.
The Perfect Storm
Look at what is happening in the world.
The war in Iran has choked off the oil supply. The Strait of Hormuz is a war zone. Prices are spiking.
But this isn't just about oil. And it didn't start with the war.
Gold and silver have been rallying to historic highs all year. Why?
Because the government is bankrupt. They are printing trillions of dollars to cover their massive debts.
The dollar is dying, and the smart money is fleeing to safety.
Steve Hanke, a top economist at Johns Hopkins, sees it clearly.
He says everything is going up. He says we are entering a commodity supercycle that could last for years.
I agree with him.
The Physical Reality
Here is the brutal truth that the tech bros don't want to admit.
The world runs on physical things.
Hanke points out the key indicators. Inventories are low. We have spent years underinvesting in infrastructure.
We haven't built the mines, the pipelines, or the refineries we need.
When demand spikes, the supply isn't there. That is what causes a supercycle.
Higher prices fail to bring on new supply because of massive bottlenecks.
You can't print a barrel of oil. You can't print an ounce of gold. You have to pull it out of the dirt.
And right now, we aren't pulling enough.
The AI Illusion
Everyone is obsessed with Artificial Intelligence. They think it is purely digital. They think it lives in the cloud.
There is no cloud. It is just someone else's computer.
And those computers require massive amounts of physical resources.
AI requires power. It requires massive data centers. It requires cooling systems, land, steel, copper, and natural gas.
The tech boom is actually supercharging the demand for commodities.
The market has it completely backward.
They are overpricing the asset-light tech companies and underpricing the hardcore commodity producers that actually make the tech possible.
The relative return profile is shifting. Commodities are going to outperform tech. Period.
How to Play the Supercycle
So, what do you do?
You pivot. You get out of the fake and get into the real.
Hanke prefers the futures markets. He says if you think crude oil is going up, don't worry about analyzing a specific oil company.
Just go long on crude in the futures market.
For things like lithium and vanadium, where futures markets don't exist, you buy the producers.
My rich dad taught me to keep it simple. Buy real assets.
Buy gold. Buy silver. Buy oil. Buy real estate.
These are the things that hold their value when the government prints money.
These are the things that skyrocket when supply chains break down and wars break out.
The Choice is Yours
The signs are everywhere.
The war. The debt. The inflation. The supply bottlenecks.
The commodity supercycle is here. The wealth transfer has begun.
You can stay in the tech bubble and hope the digital illusion lasts forever.
Or you can wake up, look at the physical reality of the world, and buy the hard assets that are about to explode in value.
The smart money has already made its choice.
What are you going to do?
Robert Kiyosaki
Editor, Money Power and Profit
P.S. Right now... 21 of the largest banks are fighting over the $1.75 Trillion public listing. JPMorgan, Goldman, Morgan Stanley. The list is long.
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