The Moss Piglet is back.
It has been a busy 2021 for me so far. 2nd kid came crying in Feb, which means the kids are taking up my weekends… and my current job scope requires longer hours. Hence I had to put blogging on hiatus.
So I’m back, meaning I’ve settled down abit to have some spare time writing again.
I’m happy with the portfolio returns so far. In one of my previous posts, I have stated that I’m buying up the periodic table. I’m currently holding companies like Mosaic ($MOS), Lithium America ($LAC) and Northshore Global Uranium Mining ($URNM). My most recent buy is Geo Energy Resources ($RE4), an Indonesian coal mining company listed in Singapore.
How will 2021 end?
I am overweight on commodities and have very little or no exposure to tech for now (Is CreditbureauAsia (SGX:TCU) a tech stock?). This pretty much sums up what I think will happen for the next few months.
There’s a Problem in China
What do Evergrande, Fantasia, Sinic and China Properties Group have in common? They have trouble paying their debt and their bonds are getting smoked. However, I’m surprised that the contagion has not spread outside of China and people think this property driven cash crunch is limited to within China’s borders. I feel that a disaster of such scale should have repercussions on a global scale.
This is something interesting to look out for in the next few months.
Meanwhile, I’m getting ready by purchasing a soon-to-be relic of the past.
Kuppy has wrote a very interesting article on the energy crisis. A lot of people believe that the reason for the global energy crisis, which is threatening economic recovery, is because we didn’t do enough renewables, but the opposite is the case. Nations overinvested in weather-dependent renewables & under-invested in reliable power sources
Even Singapore is not spared from this global crisis. 2 electricity retailers have closed down in recent weeks due to the “current electricity market conditions”.
Of course, all this bodes well for my uranium plays as countries are finally considering making nuclear power part of their long term plans for sustainable energy. I also think that recent developments like KAP’s physical uranium fund has overwhelmed most uranium bull thesis. In short, i think the uranium supply crunch is coming faster than expected.
The pandemic has thrown a wrench into the supply chain cogs. We see loaded cargos on container ships sun-tanning out in the sea. We are running out of everything.
Every crisis is an opportunity to make money. High demand plus limited supply equals prices spiraling upwards. So far we had seen lumber, iron ore, nat gas, coal, aluminum, containerships etc mooning. What’s next? Great food shortage?