Why This “New-New Thing” Will Benefit U.S. Stocks

Onshoring is the new thing in corporate America. Onshoring also goes by names such as “reshoring”, “near-shoring”, “location” and even “friend-shoring”, as in, doing business only with friends.
But basically, onshoring is just another word for “security”.
Every time a US company moves some facet of production to the US, the company’s supply chain becomes more secure. It becomes more resilient to disasters against supply disruptions, whether caused by transit bottlenecks, geopolitical events, or acts of God.
Over the past three years, American companies have had their share of disruption and are now reorganizing their supply chains to bring them home.
The long era of globalization is over, ending a trend almost as old as America itself.
But as this trend ends, a new lucrative trend emerges.
So, if you’re ready to invest in the opportunities that are about to explode in the United States, read on.
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When the Big Bang erupts
The secular evolution of US supply chains resembles the Big Bang theory of the universe. What began as a confined core of commercial activity has exploded into the massive, ever-expanding firmament of globalization.
Early in the American expansion, the pioneers became self-sufficient out of necessity. Before heading west, they filled their wagons with high-tech gadgets like guns, axes, metal pots, and horseshoes. But once they left civilization, they had no choice but to rely on themselves.
Gradually, sporadic bartering developed between distant neighbors and/or Native Americans. Then, convenience stores appeared, like what the “General Store” offered. From there, national supply chains developed, and then international supply chains based on rail and maritime transport.
This, of course, gave way to cost-effective air travel being integrated with ground transportation to create global supply chains.
Despite the complexity and fragility of these supply chains, they have successfully enabled precise “just-in-time” production processes for decades.
As a result, many companies have learned to trust these supply chains completely. They’ve learned not to think about “just in case” precautions like keeping excess inventory or securing redundant suppliers.
But the “just in time” mindset died during the pandemic. In the wake of the coronavirus, the ever-expanding Big Bang of globalized trade came to a halt…and began to reverse its course to something less global.
The need for supply chain security
For much of the past four decades, American companies gave little thought to the theoretical risk of supply chain disruptions. But this nonchalance has come to an end.
The global pandemic, combined with trade wars and murderous wars, has turned theoretical risks into tangible risks. As a result, American companies are racing to de-globalize their supply chains and repatriate as many as they can.
“We are witnessing the balkanization of the global economy,” a prominent mining entrepreneur remarked recently. “The Chinese want to secure their entire supply chain, top to bottom, belly to grave – so do the Americans.”
Although this quoteable entrepreneur refers specifically to the metals that power the renewable energy industry, his observation applies to most other supply chains.
Like the Chinese, we Americans also want to secure “our entire supply chain, top to bottom, from the womb to the grave.” The more American companies move in this direction, the more they secure production.
The US electric vehicle (EV) industry provides an illuminating case study.
Dozens of U.S. and foreign automakers have increased their electric vehicle production capacities in the United States, but the “American-made” electric vehicles that are starting to roll out of these new plants are highly dependent on supplies and components from abroad. , especially from China.
As a supplier to the global electric vehicle industry, China provides approximately…
- 80% of graphite material for battery anodes…
- 70% of refined cobalt…
- 55% of primary nickel…
- 60% of lithium chemicals…
- 79% of all lithium-ion batteries…
- And 85% treated rare earth elements.
The picture that emerges from these percentages is impossible to miss; China dominates most links in the global electric vehicle production supply chain.
It’s not an ideal structure for US-based electric vehicle manufacturing.
The nascent boom in US-made electric vehicles may not prosper for long if EV makers continue to rely heavily on battery-metal inputs from China and other distant countries.
Clearly, the U.S. EV industry can’t end its heavy reliance on Chinese supplies overnight, but it can curb that reliance…and that’s exactly what’s happening. pass.
America’s New “Epicenter of Wealth”
As US-based EV makers shift away from China and bring supplies and components home, there are plenty of reasons to believe there’s a chance to make big bucks – right here in America.
If you get there early enough, the end of globalization could bring you not only A opportunity… but dozens chances of building your wealth over the years and even decades to come.
And it’s all going to be within a 300 square mile radius.
There is an “economic”supercluster“EV innovation is happening, and it’s going to create new millionaires among the few people who know how to take advantage of it.
Companies are investing over $1 billion in this supercluster, and you can step into the ground floor of what I call “Made in America 2.0,” the push to bring revenue and industry back to the United States. United.
Get all the details here – including one of my top EV picks, absolutely free.
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