Photo by Steve Johnson on Unsplash

The US and China are currently engaged in a global arms race for AI dominance.

That arms race is being fueled by fiscal spending, aggressive state intervention in promoting key technologies and… securing minerals deemed critical to the development of said technologies.

For years China has been in the lead in this process, securing deals with various nations in Africa and South America to ensure the supply of items like copper, lithium, cobalt and more. However, as the world just discovered, the U.S. is rapidly playing “catch up” in a big way, using the crimes of Venezuelan President Nicolas Maduro as an excuse to invade Venezuela thereby securing access to vast quantities of natural resources.

As investors, our job is not to invest for the present, but to invest for what’s coming down the pike. And the U.S.’s actions in Venezuela, taken in the context of the AI arms race, indicate that global superpowers are “all in” regarding the securing of hard assets.

This is a “once in a lifetime” event for investors. Since 2011 hard assets/ commodities have been in a bear market relative to stocks. The ratio between the Commodities index and the S&P 500 has been in a steep decline throughout that time period as stocks, led by Big Tech’s rapid growth, have left hard assets/ commodities in the dust.

By the look of things that outperformance is about to change. The ratio between commodities and the S&P 500 has just put in a double bottom. And it is carving out a classic bullish falling wedge formation. This forecasts a potentially EXPLOSIVE move upwards as hard assets ignite relative to stocks.

Again, the dominant theme for the global economy today is the arms race for AI supremacy between the U.S. and China. And this race is igniting a MAJOR bull market in hard assets.

Those investors who are correctly positioned for this could generate life-changing returns. 

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