We just had an incredible event for new members of Surge Point Trader. I’m serious. I just unveiled a new momentum strategy for just the second time in my life. I’d love for you to check it out because there is real opportunity in the months ahead. You don’t want to miss out on breakout stocks and trends. In fact, my latest recommendation was centered around the freight industry and the ongoing supply chain crunch.
As you know, Barrons reported over the weekend that we could be facing a significant supply chain shortage over the next 12 to 18 months. The scarcity of raw materials, labor, and extended lead times has driven the price of sea freight through the roof. From January 2020 until today, we’ve seen the average price of a shipping container from Asia to North America surge by a staggering 700%. Even worse, lead times have really pushed out further.
Companies like Costco Wholesale (NASDAQ:COST) and Nike (NYSE:NKE) have seen their lead times double since the start of the pandemic. This is a massive problem and it doesn’t appear to be going away any time soon.
Focusing on the Supply Chain of Money
Now, I was asked on Friday while visiting Ask the Pros how I might trade the supply chain crunch. My view is that investors are focusing on the wrong thing. I don’t think that the money is going to be made moving forward in the sea shipping industry.
I think the money is to be made in the credit markets. You see, U.S. business-to-business spending totals about $30 trillion to $35 trillion each year. So, I am looking at the companies like American Express or Paypal that specialize in small business lending. There are trillions of dollars locked up in the supply chain of money, and every company that reduces the friction of payment solutions is going to be a winner in the years ahead.
I am in the middle of writing a special report on the subject that I’ll be giving to Haven Investment Letter readers as a bonus later this month. All you have to do is tune in and check it out to get this little bonus.
With market momentum positive today, I’m content to just ride a number of trends that will alleviate the supply chain crunch. I’m heavily focused on automation and ways that investors can tap into changing trends in education. I’ll be back soon to talk about the future of higher education and different ways that you can profit.