THE stock pick for when mania kicks off

🚀 History doesn't rhyme it repeats or something

Happy New Year!

I’ve been dying to get this to you for a while now…

This is part one of ‘n’ of some stock ideas that NEED your focus this year...

And by the way…

It’s not that I am bored of FX anymore…

It’s that stocks and ETFs are more thematic, fun, and relevant to us.

We are about ideas and progression, not CFD punting (yuck).

But anyway..

DO YOU REMEMBER TESLA?

Yes, that little car company where everyone calls the owner dumb (including me like 8 years ago) but is one of the mainstays at the top of the SP500 now?

I’ve had to apply a log scale, the share price has gone that crazy over the last few years.

The company has made a lot of people rich.

A lot.

And you know what I’m loving right now?

The HATE electric vehicles are experiencing globally.

Take the picture and headline below for instance…

This is in China.

Is this representative of EVs or of the Chinese economy?

In Europe there’s a similar picture…

Again, a problem with EVs or a fear of electricity prices caused by the Russia gas supply issues while petrol is relatively cheaper?

Don’t get me wrong, I am not a fan of EVs…

I like the sound of an engine.

But this is a trade, and a trade is based on who’s going to buy something off me at a higher price than I bought it, and in what size.

So…

Enter Rivian.

I know.

Looks like shite right?

GREAT.

I remember when Cameco and Rolls Royce looked like crap too and they ended up being beautiful.

EVs aren’t going away.

They are certainly part of our future.

And Tesla needs some competition…

"I'm actually surprised to be honest at how much we've seen others pull back," Rivian Chief Executive RJ Scaringe said in an interview with Reuters. "I think it's going to create, unfortunately, somewhat of a vacuum of products in the market."

He said that "shifts in buying behavior beyond the tail end of 2023" were not influencing Rivian's investment strategy for cheaper R2 vehicles that the company expects to launch in 2026.

That latter part is crucial.

Guys, what we’re looking at here is an opportunity for long term pricing in.

Ask yourself a few questions here.

1) Do you think Rivian cars are cool?

2) Do you think 2020/1 has displayed the insanity of markets, regardless of even having a functioning product? (GMC had a product, did they?)

3) Do you think Amazon would make a good bet in this remit, given they are one of the largest transportation firms in the world?

4) Do you think low interest rates are a facilitator of new industry speculative capital allocation?

If your answer is yes to those, I’d look to Rivian as a strong case to hold starting now with a view to add when we have more of a view on interest rate pricing.

There’s no further to this case yet than this, but you can be sure we will be updating this monthly.