Hey There Income Hunter,
America got hit with a major wake-up call in 2020, and it was more than just Covid.
2020 was also the year China came very close to surpassing the US in attracting foreign direct investment (FDI).
According to data from the UN, China actually came within $2 billion of taking over a very important title in the world.
FDI tells you a lot about a country …
To be the best in the world at attracting new business, you need to be able to build long-term relationships, provide a quality workforce and talent, offer an open business environment, meet peoples’ and needs and understand business trends.
Well, in the face of one of the toughest challenges in US history (Covid) and massive political pressure, the US surged to nearly $400 billion in FDI – more than double China’s FDI for 2021.
Today, we’ll take a look at the cities that are capturing the various “Hot” business opportunities of interest and a stock that is near prime location for a purchase.
Looking at the US from the Outside
Covid forced many countries to spend trillions in relief of the lockdowns and revenue loss for businesses.
Now, what makes the USA so unique is the power of what its very acronym stands for …
The “United States of America.”
50 states united under the same rule of law, tax, fiscal and monetary policy structure.
Yet they manage 50 individual budgets, state taxes and laws that allow them to compete for workers and tax receipts inside the US … and for FDI outside the US.
So, when times are tough and the world is hit with a global pandemic, you can rise above it all and see who shines.
Well, it was clearly the USA over the past two years. Let’s take a look at a comparison from 2021 to 2022 for FDI flows …
Notice the changes from year to year. Covid actually clearly showed how superior the US is in its ability to be self-sustaining through a changing global environment.
Certain countries, namely Germany and China, may never fully recover, as Covid has reversed globalization and left countries that benefited from global unity trying to figure out how to survive in an individual every-man-for-himself world.
As traders it is just as important to follow FDI trends and reasons behind them as it is the technical and fundamental trends of individual companies and stocks.
EV Investment in Greensboro, North Carolina
This year, Toyota broke ground on a $1.5 billion battery plant near Greensboro, an investment that was supplemented by an additional $2.5 billion announced in August.
This will create 2,100 new jobs, according to Toyota.
“This plant will serve a central role in Toyota’s leadership toward a fully electrified future and will help us meet our goal of carbon neutrality in our vehicles and global operations by 2035,” said a Toyota spokesperson.
The EV trend has taken a back seat lately to fossil fuels with such immediate urgency for fuel now, but once we get through this period most new investment will be poured into an electrified world.
So, how can you capitalize on this growing trend?
Feyer Battery (Ticker: FREY)
FREY, a lithium ion-based battery manufacturer, is very well positioned to benefit from the EV trends in the US and Europe.
Frey uses a novel process that reduces cost by over 50% versus conventional methods.
Their proprietary technology lowers carbon footprint by using 100% renewable energy to power its facilities, among other means of reducing its greenhouse gas emissions.
They recently signed an agreement with a Norwegian building company to construct its first factory, called Giga Arctic located in Norway.
Prior to 2020, the top 10 battery manufacturers were all headquartered in China, Japan and South Korea, so Freyer can be a powerhouse manufacturer for the US and Europe.
Their fair value price estimated by Morningstar is 34% higher at just above 24.
Let’s take a look at their chart pattern …
Notice the current price is bumping up against the high set in September. We may get a slight correction, but don’t expect much from this innovative growth stock.
The 13.25 to 14.25 area would be a good zone to get long FREY and add if it does test the 50-day moving average. This is a young company that may have a leg up on the market,so you could see upside surprises.
Bring It Home
The gloomy global picture does not extend as much to the US as it does for energy importing countries i.e. China, Japan, UK and Europe.
I am not saying there won’t be continued corrections in specific sectors of the US and even the overall market …
What I am saying is, if you are patient, when we do get extended sell offs, they are opportunities to accumulate positions in stocks that will lead the rebuild of manufacturing in the US for the long-term.
Live and Trade With Passion My Friend,
Griff