Actionable Intelligence Alert with John Polomny

I show my data on the central bank data I have been collecting. The majority of the world's central banks are lowering rates. Expect the big dogs, the Fed, the ECB, and the Bank of England, to begin rate cuts this year.
This wave of liquidity is already causing hard assets to get a bid. This likely has a lot more room to run.

A recent article in the Washington Post reports that the US is facing an electricity shortage because of years of underinvestment in the transmission grid and underestimating electricity demand due to the growth in data centers and AI.
This will lead to more plants being built and more transmission and distribution infrastructure needing to be built. This is bullish for AIA subscribers.

Amazon just closed on a $650 million dollar data center adjacent to a nuclear power plant in PA. The Wall Street Journal has said data centers currently consume 1% of all electricity demand. They also say that they expect this to grow by 50% over the next several years.
The newer AI chips consume quite a bit more electricity than the current generation of chips. It looks like this demand growth will be filled with some level of nuclear power.

Interesting analysis in the most recent Goehring and Rozenswajg commentary concerning the possibility of US shale growth peaking while Saudi production growth may have also peaked. I recommend reading the recent G&R commentary for more in-depth coverage.

Another peak in sentiment and ensuing volatility in uranium land has many throwing in the towel. However, positive fundamentals have not changed and may have even gotten better.
Global Manufacturing PMI is at 50 and rising. What does this mean for resource markets?

From a historical perspective, specific sectors of the US market market, particularly the tech sector, are highly overvalued. Other sectors, like energy, are at multi-decade levels of relative undervaluation.
I have found success in buying undervalued assets, waiting for the market to discover that undervaluation, and then re-rate those assets higher.

Vicki Hollub, the CEO of Occidental Petroleum, was interviewed by CNBC. In the interview, she stated that she expects oil to be in short supply by 2025. She said that the world relies on legacy discoveries for its supply, which will lead to shortages and higher prices.

Kazatomprom reported that it will have a production shortfall in 2024 and very possibly in 2025. The market now awaits to see what Cameco reports. Long story short, uranium prices are going higher for longer.

I remain bullish on worldwide oil demand growth as emerging market demand will drive demand. The average US consumer uses 22 barrels per year. The average Indian uses 4 barrels per year. The average African uses even less. Don't forget depletion of 5-7% per year.
We will have periods of cycle demand weakness, but overall, we will need more oil over time.

Lots of rumors on Uranium Twitter this week about the production shortfalls at Kazatomprom. Is it because of a shortage of sulphuric acid? Overproduction and mismanagement? I discuss.
Plus, the economy continues to deteriorate, yet employment is still holding things up