The market hates uncertainty more than anything else and the primary source of that uncertainty has just expanded.
Eagle Financial publisher Roger Michalski and macro analyst Jim Woods have found the perfect investment for a chaotic environment and they’ve declared it the “#1 Investment to Make During the War with Iran.”
The Teaser
A Fool lies here who tried to hustle the East.
“Renaissance man” Jim Woods has been active in the market for more than three decades as a broker, hedge fund trader, and most recently, investment newsletter editor.
We have previously reviewed his “America Forward” Stocks and Microreactor Stock Pick to Save AI, among others.
The quote at the start of this teaser is from English poet and writer Rudyard Kipling’s novel The Naulahka: A Story of West and East.
It was written before the start of the 20th century, but it remains eerily relevant today. That’s because the United States is just the latest in a long line that has attempted to influence or “hustle” the former Persian Empire known today as Iran.
Saddam Hussain tried it in the 80s and the Greeks and Romans before him too. All met with either permanent or temporary defeat.
America is flirting with being next in a long line of historical footnotes, as it now faces a daunting choice:
- Continue to fight/wage economic war
- Effectively retreat from the Middle East
From an investing standpoint, such macro uncertainty is causing major disallocations in world markets, with obvious ‘no brainer’ calls underperforming since hostilities began on February 28th, while other, more under-the-radar assets have soared.
Jim’s #1 investment falls in the latter category while matching the current reality on the ground.
The Pitch
It’s name is only revealed in a new report plainly titled “The #1 Investment to Make During the War with Iran.”
All we have to do to get our hands on it is subscribe to Jim’s Forecasts & Strategies newsletter.
It costs $77 for the first twelve months (normally $249) and comes accompanied by a couple of bonus reports as well as a 30-day money-back guarantee.
An Unconventional Conflict
Cause and effect.
It’s a simple concept that entails an action or event and it’s direct result. For example, the percentage of people who regularly shop online has swelled over the past two decades (the cause) and as a direct result, e-commerce sites and platforms like Amazon and Shopify have thrived (the effect).
However, when it comes to today’s Iranian war the logical chain of cause and effect has broken down.
In the past, an armed conflict (the cause) meant a greater need for weapons and defense (the effect), but so far the latter has been AWOL.
The broad iShares U.S. Aerospace & Defense ETF (CBOE: ITA) is down 5% since the end of February.
Similarly, traditional safe-haven investments during times of global upheaval like gold have failed to rally, down some 20%. Largely due to profit-taking by holders who were already up big in their positions, as Jim rightly points out.
Only energy, the very commodity the conflict has constrained supply of, has been where the effect of the cause has shown up, sort of, as it’s only up about 5% based on the Energy Select Sector SPDR ETF (NYSE: XLE).
Sure, individual oil producers and royalty trusts have outperformed, but it’s been an uneven ride.
So, where or what should we be investing our money into to beat inflation and Mr. Market?
A Place of Outperformance
An obvious, but overlooked opportunity.
This is an accurate description of Jim’s #1 investment to make during the war with Iran.
It’s already up more than 300% over the past six and a half months and gains could accelerate.
Given the virtual closure of the Strait of Hormuz, the more recent taking and shuttering of the Bab al-Mandab shipping lane in the southern part of the Red Sea by Iran-backed Houthi rebels, and the fact that many oil tankers are simply too large to travel through the Suez Canal, it means seafaring cargo ships are going to have to travel farther and longer through alternative routes.
Jim’s pick plays to this somber reality in an ingenious way. Let’s find out what it is.
Revealing Jim Wood’s #1 Investment to Make During the War with Iran
Promoted as the “ultimate way to get exposure to the current situation” Jim’s #1 wartime investment is not a short, options contract or a stock, but rather:
- An Exchange Traded Fund (ETF) that invests in freight futures contracts tied to dry bulk shipping rates.
- It is one of the best performing investments so far this year.
This can only be the Breakwave Tanker Shipping ETF (NYSE: BWET).
- It’s the first and only ETF that exclusively buys freight futures contracts tied to dry bulk shipping rates based on the Breakwave Wet Freight Futures Index.
- From February through the end of July, BWET was up by more than 300% and it has rocketed even higher since.
The Biggest Gains of the Year?
The war is the cause and soaring shipping tanker rates are the effect.
The legendary ticker symbol of BWET is already the best performing, non-leveraged ETF, so far this year, out of more than 7,500 worldwide. So Jim is definitely riding coattails with this pick.
But are BWET’s best days behind it or does it still have room to run?
Besides cash and money market funds, BWET’s largest holdings are freight futures (derivative contracts) on the expected future level of freight rates to and from various international destinations.
Since the outbreak of the Iran conflict, such rates have ripped higher than a fighther jet on a mission.
As an example, a supertanker transporting crude rarely earned more than $45,000 per day prior to February. Now, the going rate is up to nearly $800k a day or roughly 17x more, with some being offered generational wealth just to take the risk.
The $800k rate was before the Bab al-Mandab strait got cut off a couple days ago.
Now options to move critical supplies out of the Middle East have become even more limited, take longer, and are costlier.
The Habshan-Fujairah (Abu Dhabi) to Gulf of Oman pipeline is only capable of transporting some 1.5–1.8 million barrels per day (bpd), compared to the 15-25+ million bpd that typically went through Hormuz and Bab al-Mandab on any given day.
This leaves the scenic route around the Cape of Good Hope in southern Africa as the remaining major ocean shipping route for intercontinental traffic. It adds roughly 10-15 days to journeys (depending on origin/destination) and raises freight rates.
Thus, until oil and ships are freely flowing again, the timing of which is anyone’s guess, shipping rates will remain elevated, making Jim’s timely call a solid choice to finish the year in the black.
Quick Recap & Conclusion
- Eagle Financial publisher Roger Michalski and macro analyst Jim Woods have found the perfect investment for a chaotic environment and they’ve declared it the “#1 Investment to Make During the War with Iran.”
- Conventional wisdom picks like aerospace and defense and gold are both down 5% and 20%, respectively since the start of the conflict, leaving Jim looking for unconventional alternatives.
- His choice is only revealed in a new report plainly titled “The #1 Investment to Make During the War with Iran.” It comes included in a subscription to Jim’s Forecasts & Strategies newsletter, which costs $77 for the first twelve months (normally $249).
- However, we were able to reveal Jim’s #1 investment for free! It’s the Breakwave Tanker Shipping ETF (NYSE: BWET).
- Breakwave has broken out this year along with the tanker shipping rates it tracks and based on the worsening reality on the ground, it’s trajectory is still looking up.
Have you made any short-term, wartime investments? Tell us in the comments.