4,000% in 10 years – Fat Tail Daily

First things first.

I’m announcing a coming Fat Tail Daily surprise…

Tomorrow is a more-special-than-usual issue.

So, make sure you check it out.

It covers an opportunity…or “wealth window”…that is quite separate from what the mainstream press is talking about right now.

So the first thing I want to do today is make sure you read TOMORROW’S Fat Tail Daily very carefully .

I can’t say much more about the specific stocks we’ll be covering here.

But let me give you a bit of background…

Did you know there was once a fund management team that returned 4,000% in ten years?

Jim Rogers was one half of that amazing team. George Soros was the other. They ran something called the Quantum Fund.

Today, both men are legends of the finance industry. Both started poor and became self-made billionaires.

Jim Rogers was profiled in the book Money Masters of Our Time. He was asked how that fund made such blazing money for their investors.

His answer has always stuck with me. Jim said it came from betting on “secular trends, not business cycle change.”

Let me tell you why you should care when it comes to today, and the rise of artificial intelligence…the current wobble…and investor impatience.

The investment game has not changed since Jim managed money fifty years ago.

The conversation circles around economic growth, possible recessions, trade relations, market volatility, booming shares as well as the duds and the frauds.

What I’ve learnt over the years, is how all this obscures the real chance of making serious money in the markets.

The reality is that economic chit chat and market moves fade away. I’ve lived all of it for 13 years running and forgotten most of it.

What matters is what endures.

That’s what Jim means when he talks about secular change, and not business cycle change.

A secular change is when something becomes embedded in daily life, or business, that wasn’t there before…and keeps growing.

Take the iPhone. It was released nearly 20 years ago, but is still driving Apple’s profits today. It was a novelty when it first came out. Now no one can live without it.

All through this period the US economy has looked both weak at times… but strong at others…had Obama as President, then Trump, then Biden and now back to Trump…low rates, then high rates…now “neutral” rates.

All those peripheral factors are “business cycle” change. They’re not enduring.

In 2007 the “secular” trend was a personal communication device that incorporated so many different features that people would pay for because of the scale of the benefits and convenience.

That brings us to today.
And tomorrow’s special Fat Tail Daily

I tried to access the artificial intelligence platform “Claude” this morning to ask it a question…and you know what?

The free version is suspended because the usage is so high they’re reserving its processing power for paying customers.

Separately, our tech assistant here used a Microsoft AI to send me an answer to a problem I’m having with my computer.

Separately again, one of our office staff suggested I used Claude to collate some of my research material to assist in creating a new report.

In other words…AI is infiltrating business operations and daily life at an astonishing speed, considering it launched only a few years ago.

At the same time, leading US and Chinese firms are pouring billions of capital into the industry.

Next year Tesla should release a robot that can replicate human movement to an unparalleled degree.

This looks everything like a secular trend you can ride for decades.

In other words, comments about the AI ‘bubble’ popping or fizzling out are ludicrous.

These don’t end in a year or two. They end, if they’re going too, after 10-20 years.

That was another secret of Jim Rogers and George Soros. They looked for industries they could ride for years.

They didn’t mean it was a straight line up. In markets, there’s wobbles, volatility, concerns, drops, recessions and more.

But history teaches no clearer lesson that huge market returns coming from just two things.

One: getting the big – “secular” – trend right is paramount. It’s no good buying fax machine manufacturers or Polaroid when competitive tech is about to rout their user base.

The second factor? You must hold on! Sounds easy, but every investor is faced with the challenge of not letting go, or just giving up, or chasing something hotter.

This is, in fact, the challenge of the AI. We all know about Nvidia and Tesla and Microsoft and the chip boom. They’re well priced.

The big gains must come from the second wave of this secular trend…companies using AI in profound and impactful ways.

That’s why we call it AI 2.0

Tomorrow, we bring in an AI angel investor heavy-hitter to give his take on what AI 2.0 stocks to buy, right now.

Make sure you tune in!Yes, US stocks took a bit of a wobble lately. But in 2030? You (or I) will have forgotten the headlines of today. Trump could even be dead, at his age.

But Claude? He’ll be here, faster, more intelligent and, likely, used in ways we haven’t even got to yet.

2030 is 5 years away. In markets, that’s an eternity.

Now, what do you want to back in our Jim Rogers framework? You can fret about tariffs that may or may not happen, put there by a President that may or may not be alive.

Or you can take the best look at AI – the biggest trend in the world, possibly history – and take a calculated position in how to benefit from it, come what may in the world around it.

I know what worked for Jim Rogers. It’s AI all the way from here.

Tomorrow: we release a definitive presentation on what AI PHASE 2 STOCKS you should consider buying right now,

Stay tuned for tomorrow’s issue….

Best wishes,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

***

By Murray Dawes, Thursday, 27 March 2025

Is the demand for copper real?

It’s decision time for copper.

Is the sharp rally of the past few months on the back of underlying strength in demand or is it just people front running the start of tariffs in the US?

Copper is notorious for failing to breakout above key resistance levels.

In the chart above I have shown you two blue arrows that trace out the last two false breaks of major highs.

The price breaks out above a recent high, but then the sellers move in quickly and snuff out the rally.

Then all of a sudden prices drop sharply.

One of these days copper will finally break out above the US$5.00 level and trend higher.

But after so many false starts in the past you need to remain vigilant at these times and aware of what can happen if the music stops.

This is not a moment to jump into new copper positions. You should already be in positions and riding the trend, so you have time to exit if the rally doesn’t carry on at this point.

Futures prices for copper aren’t hinting that traders expect copper prices to fall after the tariffs come into effect. So perhaps this is the real deal.

I’m hoping the breakout is close because when it happens I am confident the rally that happens will carry on for longer than most expect.

When volatility spikes, fear often takes over, making it easy to miss opportunities in an unbalanced market. And right now, the market certainly seems out of balance. For a fresh take on which stocks are prime targets in this environment read my just released whitepaper now.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

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