We’re used to seeing this playbook out of Beijing:
- Identify a strategic industry
- Inject billions of dollars
- Prop up a “national champion”
- Guarantee customers
- Oh, and buy the stock, too
But this week, it wasn’t the Chinese Communist Party pulling those strings.
It was the U.S. Department of Defense.
As Alex Reid pointed out during Thursday’s Profit Panel, the DoD just took a 15% stake in MP Materials — the largest rare earth mine in the U.S.
But they didn’t just invest. They’re also guaranteeing the purchase of the company’s rare earth magnets — essential components for defense tech and semiconductors.
“This is very reminiscent of what the CCP would do for its companies,” Alex said.
“The U.S. is literally buying shares, guaranteeing demand, and making sure the company succeeds.”
MP shares popped 40% on the news.
But this raises a much bigger question…
Is the U.S. government starting to pick winners the way China does?
And if so, what does that mean for your portfolio?
Jack Carter was blunt: “You can’t play around with rare earth minerals. You have to secure them. That’s not optional.”
And while this might look like industrial policy, it’s also an investing signal.
Because it signals a shift in how the U.S. supports critical supply chains. And potentially, in how it funnels billions toward select players in defense, AI, semiconductors, and other critical industries.
And that’s where the real opportunity lies.
Who else is getting quietly backed by Uncle Sam?
We’ll be watching.
To your prosperity,
The ProsperityPub Team
🎰 Did You Catch This?!
After the team broke down the rare earths story…
Alex dropped one of the most cynical trade ideas we’ve seen all year.
A hidden provision in Trump’s “big beautiful bill” just made it almost impossible to be a professional gambler in the U.S.
“Only losing players will be able to afford to play,” Alex said.
And according to Alex, guess who wins? The sportsbooks…
He even gave us the specific ticker he’s looking at.
If you haven’t read his full breakdown yet — do it now:
Want to know what else the smart money is tracking?
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