Copper's Rally Is Back. This $31M Junior Is Sitting on a Potential Fortune

A high-grade copper-gold discovery in Quebec just delivered extremely high grade intercepts. Valuation? Just $31M. With copper breaking out, the timing here could be perfect. Get the symbol here.

Where to Find 15% High-Yield Opportunities Right Now

Tim Melvin
December 11, 2024

As we edge toward another year’s end, I contemplate the peculiar theater of financial markets, where the loudest voices rarely signal the best opportunities.

While pundits engage in their annual ritual of predictions (most of which will age about as well as milk left on a summer porch) and political rhetoric reaches fevered heights, I have been quietly exploring the corners where others forget to look.

I leave the prediction of doom and certain war or endless sunshine and domestic tranquility to those who choose dogma and tribes over profits and wealth-building.

In these overlooked spaces, particularly in the fixed-income markets, something rather fascinating is unfolding. The mortgage securities market – both residential and commercial – presents what I would call a “students of history” opportunity. You know the kind I mean: where market psychology creates the sort of disconnects that make value investors sit up a bit straighter in their chairs.

Let us break this down methodically, shall we? The current landscape for mortgage-backed securities (MBS) and mortgage REITs offers what I would describe as a thoughtful investor’s opportunity.

It is not the kind that makes for an exciting cocktail party conversation, mind you, but the sort that tends to compound quite nicely over time.

Mortgages are never going to be as exciting as AI, quantum computing, and nuclear fusion.

Of course, mortgages also have measurable, reliable cash flows, and a margin of safety that hope and dream stocks cannot offer.

Consider the structural elements at play.

We are seeing higher yields on both agency and jumbo MBS, creating what you might call a foundation of opportunity.

The real beauty here lies in the dramatic reduction of prepayment risk. With interest rates where they are, the refinancing wave has receded, making cash flows more predictable than they have been in quite some time.

This is where it gets interesting: residential mREITs are trading at notable discounts to net asset value. This is not the kind of discount that suggests imminent doom but rather the type that historically appears when markets paint with too broad a brush. As the Fed approaches what appears to be the end of its hiking cycle, these discounts may well normalize, offering potential capital appreciation alongside those already attractive yields.

It is not just residential mortgages that offer high-yielding opportunities to book high long-term total returns in this environment.

The commercial real estate angle adds another layer to this story. Traditional banks, particularly our regional friends, have created a financing vacuum in the CRE space, totaling $500 billion.

Nature and markets both abhor a vacuum, and we are seeing sophisticated players like KKR and Ares Management step into this space with notably interesting solutions.

December 15th: Learn why the most obvious trading signals usually fail, and what seasoned pros look for instead. REGISTER NOW FOR FREE

The private equity-backed CMBS REITs deserve special attention here.

Let me share an observation about the peculiar nature of market psychology—how it creates fascinating pockets of opportunity in the spaces between perception and reality. It’s rather like watching the tide slowly recede, revealing hidden treasures that were there all along, merely concealed by the rushing waters of collective anxiety.

Consider the current landscape of real estate investment, particularly sophisticated mortgage-backed vehicles. We’re witnessing something of an evolutionary leap here, a transformation that most market participants, caught in the undertow of headline risk and historical bias, have yet to appreciate fully.

These modern incarnations of real estate investment vehicles represent a fascinating intersection of institutional sophistication and market inefficiency. Imagine, if you will, a scenario where some of the sharpest minds in private equity – those architects of complex value creation – have turned their attention to transitional properties. Yet, the broader market remains fixated on outdated narratives about real estate risk.

The irony here is delicious: in their rush to avoid anything touching real estate, market participants have created precisely the kind of inefficiency that sophisticated investors dream about. We are seeing 8-15% yields in high-quality mortgage portfolios not because of some hidden catastrophic risk, but because of what we might call a “perception premium”, that gap between what something is and what the market thinks it is.

There is a certain philosophical beauty to this situation. The fundamental backdrop remains as solid as the properties’ foundations: the eternal dance of supply and demand in housing continues its imbalanced waltz, institutional investors maintain their never-ending quest for yield, and the regulatory framework provides a steady drumbeat of stability. Yet here we are, watching the market engage in what future historians might well describe as a collective exercise in missing the forest for the trees.

For the patient investor, and let us pause here to really consider the profound importance of patience in a world increasingly devoid of it, this creates what we might call a “multiple horizons of opportunity” scenario. The immediate gratification of substantial yields provides a sort of philosophical anchor, while the longer-term potential for valuation normalization offers what some might call a free option on market rationality.

In many ways, the overreaction we are currently witnessing in real estate-related investments is a perfect case study in market psychology. It is as if the market, in its infinite capacity for pendulum-like swings between greed and fear, has temporarily forgotten that cycles are, by definition, cyclical.

This temporary amnesia creates a window, not just for profit, but for the kind of thoughtful, deliberate positioning that tends to look obvious in retrospect. As with so many things in life and markets, the key lies not in fighting the current narrative but in recognizing its transient nature and positioning oneself accordingly.

For those willing to embrace the complexity, to look beyond the surface-level narratives and into the deeper structures of opportunity, the current market environment offers a rare chance to be compensated handsomely for thinking independently while others react emotionally.

In the end, isn’t that what sophisticated investing is really about?

Not just seeing what others miss, but having the patience and perspective to act on it.

Now, if you will excuse me, I believe I hear opportunity knocking, quietly, as it tends to do in markets like these.

Transform Volatility Into Predictable Profits

Image via Shutterstock

Continue Reading...

Popular

Trump keeps saying the GOP mega bill will eliminate taxes on Social Security. It does not

WASHINGTON (AP) — President keeps saying that Republicans' mega legislation will eliminate taxes on federal benefits.

After Diddy's conviction, here's where his business ventures stand

LOS ANGELES (AP) — Sean “Diddy” Combs has been in his federal sex trafficking trial, but that doesn't mean the once-celebrated music mogul will see his business empire restored.

This Tiny Tech Stock Could Be the Next Big Platform Play - Ad

One under-the-radar company is embedding intelligence into everyday glass-already powering Ferraris, aircraft, and city buses with adaptive surfaces and vision systems. It's not just a product. It's a platform.

Iran’s president orders country to suspend cooperation with UN nuclear watchdog IAEA

DUBAI, United Arab Emirates (AP) — Iran’s president on Wednesday ordered the country to suspend its cooperation with after American and Israeli airstrikes hit its most-important nuclear facilities, likely further limiting inspectors' ability to track Tehran's program that had been enriching uranium to near weapons-grade levels.

North Koreans swim and play at a beach resort touted as a boost for tourism

SEOUL, South Korea (AP) — North Koreans swam, rode water park slides and enjoyed other water activities at a newly opened state media reported Wednesday, as the country largely maintains a ban on the entry of foreign tourists.

From Ferrari to Bombardier - This Tiny Company Is Everywhere - Ad

A $150M disruptor is transforming glass into real-time displays and vision systems. Already embedded in global OEMs and Tier 1s, it's scaling fast - yet still under Wall Street's radar.

Tim Cook Says 'Heartbroken' By Devastating Loss Caused By Texas Floods, Ron DeSantis Vows To Support Lone Star State

U.S. leaders from across the political spectrum, including Tim Cook, Barack Obama, Ron DeSantis, Nancy Pelosi, and Elizabeth Warren, expressed sorrow and pledged support after devastating Texas floods killed at least 78 people, including 28 children.

House Republicans race toward a final vote on Trump's tax bill, daring critics to oppose

WASHINGTON (AP) — Republican leaders in the House are sprinting toward a Wednesday vote on President Donald Trump's , determined to seize momentum from a in the Senate while essentially daring members to defy their party's leader and vote against it.

Gold Just Hit Another Record. This Junior Could Be Next. - Ad

This copper junior was the smallest company invited to a top global mining conference. With nearly 1B pounds CuEq and 50,000m of funded drilling, this story won't stay quiet for long.

Bernie Sanders Warns Of 'Concentration of Ownership' In US Companies: 'That's Power'

Bernie Sanders claims Wall Street giants hold majority of US corporations, giving them power to steer economy & politics. Wants reform & better wages

FDA Submission Expected This Summer - Invest Before It Happens - Ad

This company is making heart disease easier to detect with AI. Their tech has officially been designated a "Breakthrough" by the FDA. You now have an opportunity to get in at a potential inflection point.

Elon Musk Says X Will Charge Advertisers By Screen Size To Curb 'Giant Ads' That Hurt User Experience

Elon Musk announced that X will transition to charging advertisers based on vertical screen size, marking a significant shift in the platform's revenue strategy as the company works to restore advertising income to pre-acquisition levels.

Cash-Rich IonQ To Capture 20% Of Quantum Market By 2035

IonQ shares climb as investors rally behind its bold quantum growth strategy and long-term market potential.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

In a country where alcohol is banned, Pakistan’s top brewery is betting on soft drinks

RAWALPINDI, Pakistan (AP) — A pungent fug of malt and yeastiness hangs over Murree Brewery, ’s biggest and oldest producer of alcoholic drinks.

Netflix Quietly Circles Shark Week With A Killer Strategy

Not even "Shark Week" is safe from Netflix. Here's how the streaming giant is pushing against cable dominance for summer shark content.

Copper's Spiking - And This Junior Has the Grades to Match - Ad

Copper is climbing again - and this time, it looks tariff-proof. A $31M junior just posted nearly 1B lbs of copper equivalent. With insiders and institutions piling in, this could be the next breakout.

Netflix's Squid Game Finale Takes Over Seoul With Massive Parade, Star-Studded Fan Event

Netflix celebrated the finale of Squid Game with a parade and fan event in Seoul, featuring characters and emotional reflections from cast.

Back This Medical AI Tech - Ad

You don't often find healthcare tech company valued at $4M. HeartSciences is an exception. With $75M invested, including R&D, clinical trials, and product development, their patented AI software is approaching FDA submission, a potential major inflection point.

Trump asks Supreme Court to remove 3 Democrats on the Consumer Product Safety Commission

WASHINGTON (AP) — The Trump administration on Wednesday asked the to remove three Democratic members of the , who were fired by President and then reinstated by a federal judge.

Steve Jobs Took Secrecy To Fight Club Levels For This Critical Mission At Apple — 'People Thought They Knew…But Nobody Knew'

Apple's original iPhone team, under Steve Jobs, operated with intense secrecy, likening their work to "Fight Club," with no one outside the core group knowing the device's design until its 2007 debut.

Elon's Greatest Invention... Hidden in South Memphis? - Ad

In South Memphis, I uncovered what could be Elon Musk's biggest invention yet. It's so secretive, rivals are flying drones to spy on it. If you're serious about investing in AI, now's the time to see what's really going on inside those walls.

ExxonMobil and partner Qatar Energy find new natural gas deposit off Cyprus

NICOSIA, Cyprus (AP) — A consortium made up of ExxonMobil and partner Qatar Energy International has made a second natural gas discovery beneath the seabed south of , the government said Monday, a find that bolsters the region’s potential as an energy exporter.

Trump Says Jerome Powell Should 'Resign Immediately' After FHFA Director Alleges Fed Chair Lied About $2.5 Billion Renovation Plan

In Big Tech Just Before Congressional Hearing: ReportTrump wants Powell gone over testimony liesTrump demands Powell's resignation after accusations of misleading testimony from Federal Housing Finance Agency Director. Trump has been critical of Powell in the past.

The Next Big Breakout Isn't a Chip. It's Glass. - Ad

Smartphones disrupted phones. EVs disrupted autos. Now smart surfaces are disrupting everything - and one overlooked company is at the center of it.

Cathie Wood's Thursday Crypto Moves: Ark Unloads Nearly $25 Million In Coinbase, Block Stocks

On Thursday, Cathie Wood-led Ark Invest made notable trades, including the sale of shares in Coinbase Global Inc. (NASDAQ:COIN) and Block Inc. (NYSE:XYZ).

Samsung unveils its new line of foldable devices at Unpacked

NEW YORK (AP) — Samsung introduced several updates to its foldable devices lineup on Wednesday, with the new Galaxy Z Fold 7, Z Flip 7, and the new Z Flip 7 FE taking stage at the latest Unpacked event.

Copper's Rally Is Back. This $31M Junior Is Sitting on a Potential Fortune - Ad

A high-grade copper-gold discovery in Quebec just delivered extremely high grade intercepts. Valuation? Just $31M. With copper breaking out, the timing here could be perfect. Get the symbol here.

Datadog Stock Surges On S&P 500 Inclusion

Datadog Inc (NASDAQ:DDOG) shares are trading higher in Wednesday's after-hours session after it was announced that the company will join the S&P 500.

This Tiny Tech Stock Could Be the Next Big Platform Play - Ad

One under-the-radar company is embedding intelligence into everyday glass-already powering Ferraris, aircraft, and city buses with adaptive surfaces and vision systems. It's not just a product. It's a platform.

Pony.ai To Deploy Robotaxis In Dubai, Trials Begin Late 2025

Pony AI and Dubai's RTA announced a partnership to advance L4 autonomous mobility solutions through a multi-phase rollout, starting in late 2025.

From Ferrari to Bombardier - This Tiny Company Is Everywhere - Ad

A $150M disruptor is transforming glass into real-time displays and vision systems. Already embedded in global OEMs and Tier 1s, it's scaling fast - yet still under Wall Street's radar.

Republicans hit major setback in their effort to ease regulations on gun silencers

WASHINGTON (AP) — Republican efforts to loosen regulations on and short-barreled rifles and shotguns have been dealt a big setback with the Senate parliamentarian advising that the proposal would need to clear a 60-vote threshold if included in their big tax and immigration bill.

Gold Just Hit Another Record. This Junior Could Be Next. - Ad

This copper junior was the smallest company invited to a top global mining conference. With nearly 1B pounds CuEq and 50,000m of funded drilling, this story won't stay quiet for long.

Telegram's Rumored IPO: What Investors Should Know

The buzz around Telegram's potential initial public offering (IPO) has intensified since the company rolled out $1.7 billion in eurobonds.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright markethundred.com
Privacy Policy | Terms of Service