Follow The Money Trail
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Government Money Is Pouring Into These Five Sectors in 2023
Very few people are talking about this. But a new law went into effect a few days ago… A law that Forbes says will trigger “big changes for the economy.”
1) Electricity. A lot of money will come into the electricity sector. There will be, and I quote “a significant pile of money unleashed to replace and to update electrical grid systems throughout the country.” Money will flow into the materials needed to run the electric grid. As well as the materials we needed to create new battery and storage systems… and the technology that goes with them. This is a huge deal for Democrats because they get to build toward renewable sources. It’s also a win for Republicans who support lowering future energy costs.
2) Nuclear energy. The Armed Services Committee, in particular, is very, very focused on nuclear energy. Even anti-nuke Democrats (like Congressman John Garamendi of California) are on board with nuclear energy projects. And so are right-of-center Republicans, like Congressman Thomas Massie of Kentucky. With this new session of Congress, there will be Acts to create initiatives for nuclear energy. And there will be Acts for safety technology for mainstream settings, too.
3) Rare earths materials. Rare earths are a group of 17 elements on the periodic table. You’ll find them in advanced electronics. Think iPhones, electric cars, flat-screen TVs, and computers. And also in military weapons systems. Democrats support rare earths because they play a role in sustainable energy, or what is called “New Energy.”
Plus, two big players are making large investments in domestic rare earths: the Pentagon and the Defence Department. That’s because rare earths are also critical for certain weapons systems. The goal is to make the United States competitive with other nations, like China. That’s because today, China produces and processes almost 60% of global rare earth supplies. The 2023 National Defence Authorisation Act has more incentives to boost rare earths production for all these new weapons systems. And in that context, the Republicans support rare earths, too.
4) Infrastructure. Congress still hasn’t greenlighted many items that were already funded by the 2021 Bipartisan Infrastructure Act. (I’m sure you can believe that.) But that’s going to happen soon. We’re going to see bipartisan support to fix commuter corridors, highways, roads, and bridges early this year.
5) The bio-industrial industry. This is one area I’m really excited about, and yet the mainstream media isn’t really talking about it. There will be new funding legislation for research and development in something called biomass. That’s a type of energy that comes from forest debris.
Biomass was huge a few centuries ago. In fact, it was the largest source of total annual U.S. energy consumption until the mid-1800s. Now, it’s only used for 5% of all of our energy. But I would not be surprised if we see a bipartisan bill on the floor by next month.
Diversification Across Industries
So there you have it 5 areas to focus attention on throughout 2023 and of course there are other areas like Defence Contracts, House Building, Financial Services and more but this is the noise coming out of Washington and the Bear Markets to focus on this year, but our advice is spread your portfolio so you don’t hedge all your bets on the one market sector and ensure you do your homework first and check out the latest market sector news. Or you can contact Bspoke Financial Services and we can manage a Share Portfolio on your behalf see more details.
Even when investing in what seems like an amazing opportunity our advice is – Never invest all your capital in a single name or idea. And invest in small increments rather than all at one time. If you like an idea, consider investing half of what you’d allocate to it now… and half in a few months or when you see a dip. You can also consider investing smaller amounts over a longer period.None of us can time the market with 100% accuracy. And none of us can get every investment right. But this approach can help you consider how to invest wisely and spread your net after considering the calculated risk factor.
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