If you want to make money in commodities, buy these stocks

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Today’s issue in preview:

• One of our top commodity recommendations reaches a new high. More gains are likely

• If you want to make money in commodities, buy these stocks

• An important update on “the world’s most important trend” and how to trade it

• Learn our Top Themes to buy now

One of our top commodity recommendations reaches a new high. More gains are ahead

Credit: tifon images

It turns out, betting on higher copper prices was a good idea.

This morning, the price of copper reached an all-time high of $6.83. The red metal is up 15% this year. The rally makes the copper theme one of our biggest winners of the past 12 months.

For more than three years, I’ve been long the copper mining theme, and urged others to go long as well. In a Sept. 25, 2025, research note, I highlighted the bullish price action in the copper mining sector and reiterated my call to own it.

The bull case here is simple: Copper is one of the world’s most useful metals. Its excellent electrical conductivity makes it a key ingredient in wiring for homes, factories, cars, electronics, and data centers.

But over the past 30 years, the copper mining industry has discovered or developed few meaningful copper deposits. Meanwhile, the collective buildout related to AI, power grids, renewable energy, and EVs is turbocharging copper demand. S&P Global expects global annual copper demand to increase roughly 50% by 2040.

The legendary mining entrepreneur Robert Friedland says that over the next 18 years, humanity will need to mine as much copper as it has over the past 10,000 years to sustain even modest economic growth.

This bull case is proving to be very profitable. The copper market’s long-term bullish dynamics are creating a glacier-like megatrend of gradually rising prices.

Copper prices are up about 68% over the past two years, which is driving the market values of copper mining firms like Freeport-McMoRan (FCX), Southern Copper (SCCO), and Teck Resources (TECK) higher.

After such a strong two-year performance, it’s reasonable to ask if the good times in copper are over. To this, I’ll remind you of something I’ve said many times in Money & Megatrends: When critical resource markets trend, they often trend big. Their trends often go for hundreds of percent gains and last 5+ years.

This is because major shifts in resource supply and demand play out over years, not months. If the world decides it wants a new copper mine, it will not get that mine for at least a decade. You cannot print or code a copper mine into existence. A good copper mining business is “AI-proof” and, as we’ve covered, is a wonderful “inflation defense” asset.

Many commodity market trends are glacier-like, playing out over 5+ years. That means the uptrend in copper and copper miners will likely last at least as long. I’m still long.

If you want to make money in commodities, buy these stocks

Credit: oversnap

As we expected, it’s a bull market in Canadian oil production.

Over the past week, three of Canada’s largest oil companies – Canadian Natural Resources (CNQ), Cenovus Energy (CVE), and Suncor (SU) – reached new all-time highs. Their revenues and profits are currently extremely strong… and should stay that way for years.

Money & Megatrends readers in good standing are familiar with our bullish stance on Canada. It’s been one of our highest-conviction themes over the past year. We’ve published over a dozen research notes on the idea.

Over the past 12 months, I’ve made the case that we are in a favorable environment for critical resources… one in which many individual resource sectors will generate strong returns. (See our piece on copper above.)

Critical resources are the building blocks of the economy. Think raw materials like crude oil, natural gas, iron ore, copper, uranium, corn, and cotton.

Even today’s high-tech world of AI, apps, email, and Zoom calls is built on a “low-tech” foundation of steel, concrete, copper, lumber, and aluminum. Every day, our cars, trucks, and airplanes consume millions of barrels of fuel. Our lights turn on because we burn coal and natural gas.

Mining, extracting, planting, harvesting, processing, refining, and transporting critical resources is a multi-trillion-dollar business that affects every area of your life.

During this time, I’ve frequently highlighted Canada as an excellent place for investment capital. Canada is the second-largest country in the world by total area, after Russia.

This means there’s plenty of area to hold big oil and natural gas deposits… huge tracts of timberland… giant mineral deposits… and enormous farms. Canada is a major player in oil and natural gas production, ranking in the world’s top five producers for both. It’s also a world leader in the production of fertilizer, uranium, aluminum, wheat, gold, lumber, and platinum.

Canada’s massive resource endowment also makes it a beneficiary of the war in Iran and its consequences.

As I’ve covered this year, for many countries and businesses, the Iran War is a powerful reminder: If your survival or smooth operation depends on uninterrupted resource flows from the often-unstable Middle East, you are in a dangerous, vulnerable position.

No politician, CEO, or major shareholder wants their business to be in that position. No citizen wants their country to be in that position. Many powerful and influential people are realizing this is a big risk that must be mitigated if humanly possible. Executives and politicians will get fired for not addressing it effectively.

This means building and buying as many forms of “not Middle Eastern” resource supply chains as possible economically… like those from safe, resource-rich Canada. I can state with confidence that no caribou will ever strap on an explosive vest and attack a local oil refinery… and no grizzly bear will send a kamikaze drone flying into a natural gas pipeline.

But don’t take my word on this trend. Take the market’s word.

It enthusiastically supports the idea of owning high-quality Canadian resource assets.

Canadian Natural Resources, Cenovus Energy, and Suncor Energy are essentially “national champions” of Canada. Together, they produce a huge portion of the country’s oil and gas. And together, their market values are soaring. Their stocks have gained 76%, 117%, and 76%, respectively, over the past 12 months.

Canadian stocks had strong tailwinds before the Iran War. They will have even stronger tailwinds after it. Still bullish on Canada.

An important update on “the world’s most important trend” and how to trade it

Credit: Black_Kira

The world’s most important trend is still moving sideways.

But Nvidia (NVDA) is giving bulls a good reason to stay long.

The company recently reported extraordinary second-quarter results, with revenue jumping 106% year over year. Its stock is up 13% over the past five weeks and is just 3.4% off its all-time high.

This is very important data that factors into our analysis of the AI infrastructure trade, which I’ve called “the world’s most important trend.”

Over the past month, we’ve published a special series of research notes analyzing the AI infrastructure trend.

The status of this critical trend has become one of the great sagas of the business and investment world… a source of intense disagreement among industry bulls and bears. It’s a trend whose outcome could have large effects on your portfolio.

Given AI’s enormous promise, large tech firms such as Alphabet (GOOG), Amazon (AMZN), and Microsoft (MSFT) have invested over $1 trillion in AI infrastructure. They are on pace to invest over $700 billion this year alone and more than $3 trillion after that.

Both the scale and the velocity of this investment boom are unprecedented. It is the largest collective investment effort in history.

Big Tech’s historic investment boom has made the entire “AI infrastructure” trend responsible for a large share of America’s GDP growth and stock market returns over the past two years. It has also drawn the skeptical scrutiny of many widely followed investment analysts who claim the trend is a bubble… one that will soon explode and cause tremendous damage to stock prices and the global economy.

If this hugely consequential trend isn’t the most important trend in the stock market, then it is certainly in the top three.

I believe the AI infrastructure trend has years to run. I believe the world’s smartest, most connected tech CEOs who have the greatest access to information on AI advancement and return on AI infrastructure spend like Elon Musk, Jensen Huang (Nvidia), Satya Nadella (Microsoft) and Andy Jassy (Amazon) just might know more about the AI trend than the bearish armchair quarterbacks know about it.

As much press as AI gets, let’s remember that less than 1% of the global population pays for top-tier AI programs. And I estimate less than 10% of large companies believe AI has made a meaningful impact on their businesses.

This revolutionary technology hasn’t yet proliferated, achieved mass adoption, or had mass impact.

Regular readers know I care a lot more about what the market thinks of any stock, trend or theme than what any one person thinks of it, including me. You can be bullish or bearish on a trend all you like, but if that trend is moving strongly against you, then your idea isn’t worth a hell of a lot in my book.

Over the past few months, we have analyzed price action in critical areas of the AI infrastructure trade – including the VanEck Semiconductor ETF (SMH), computer memory giant Micron (MU), and optical networking stocks –to guide our trading.

Since Nvidia plays a central role in AI infrastructure, it plays a central role in our analysis of it. Nvidia designs a large portion of the world’s most advanced AI semiconductors. It has also used its enormous cash flows to become a key investor in many AI firms… and to become essentially a “central bank of AI,” capable of financing many very large AI companies and initiatives.

Nvidia is not an 800-pound gorilla of AI… but perhaps an 800,000-pound gorilla of AI. Few companies in history have wielded Nvidia’s awesome combination of power, influence, technological expertise, and vast financial resources. If you wanted to argue that zero companies have, I wouldn’t protest.

As you can see in the two-year chart below, counter to the hopes of AI bears, Nvidia stock is in a clear uptrend. It hasn’t broken its all-time high of $235 per share set in May, but it is very close to doing so. A breakout above this high would be a hugely positive development for the overall AI infrastructure trade, which is currently trendless.

Market Notes

• Shipping leaders Zim Shipping (ZIM), Safe Bulkers (SB), and Global Ship Lease (GSL) all hit new highs today.

• The VanEck Oil Refiners ETF (CRAK) hit a new high today. Individual refining giants Valero Energy (VLO), Phillips 66 (PSX), and Marathon Petroleum (MPC) reached highs, too.

• Our recommendation to own Boomer healthcare investments continues to pay off. Drug industry giant Roivant Sciences (ROIV) hit new all-time highs today. Smaller-cap plays like Pharvaris (PHVS) also hit new highs.

• Fast food giant McDonalds (MCD) reached a new one-year low today.

• Footwear giant On Holding (ONON) reached a new one-year low today. The company’s fast growth rate is decelerating.

Regards,

Brian Hunt
Editor, Money & Megatrends

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