Like most investors, one of your top goals has been to enjoy financial freedom at whatever age you choose. So, it stands to reason that your money should ideally generate above-market returns with below market risk.

Truth is — if you really want to become a better investor then you need to be looking at where the smart money is heading. You need to understand what is truly driving the markets and how you can take advantage of these moves as – and before – they hit the mainstream.

Good and Cheap Stock No. 1 – Nio Inc. (NIO)

Global demand for electric vehicles is accelerating – and fast.

For one, governments all over the world are pushing for a greener future.  To help, leaders want millions of zero-emission electric vehicles on the roads.  Two, the International Energy Agency (IEA) estimates we could see 135 million EVs in the next 10 years. 

Three, China wants electric vehicles to make up about 40% of new autos sold by 2030.  “By 2025, the government aims to have in place charging infrastructure to meet the needs of more than 20 million cars,” says Wired.com. In the U.S., the Administration wants 50% of new vehicles to be electric by 2030.

One of the best ways to trade that news is with stocks, such as Nio Inc. (NIO). Not only has NIO increasing its yearly deliveries, it’s quickly expanding throughout Europe.

Good and Cheap Stock No. 2 – Li Auto (LI)

We’re also seeing accelerating growth with Li Auto.

For one, the electric vehicle maker seeing strong month over month deliveries. Two, the company has delivered strong growth with just one model – the LI ONE – which had cumulative deliveries of 194,913 between November 2019 and July 2022. The company is also moving forward with its Li L9, a smart SUV, which should help drive bigger revenue. In fact, in mid-2022, the company had already taken over 30,000 Li L9 orders in just 72 hours. Even better, the company appears confident it can achieve 1.6 million L9 vehicle sales by 2025.

Also, according to Gasgoo.com, “Li Auto aims to be NO.1 smart electric vehicle maker in China, according to the startup’s 2025 Strategy. In an internal letter, Li Xiang, the company’s founder, chairman and CEO, said that its target for 2025 is to obtain 20% market share in the world’s largest auto market.”

Good and Cheap Stock No. 3 – Lithium Americas (LAC)

Of course, we can’t have an electric vehicle boom without lithium.

After all, every EV needs at about eight kg. of lithium, according to the U.S. Department of Energy. Unfortunately, for quite some time, there’s more demand than there is supply. That’s why lithium prices have been so explosive.

The International Energy Agency has even warned that, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.”

There’s so much demand, and so little supply, even major auto companies, like General Motors are pre-paying for supply for the next six years.
One way to trade that is with Lithium Americas (LAC).

The company is currently working on its Caucharí-Olaroz, which reportedly holds 40,000 tonnes per annum of lithium. It’s also working on Thacker Pass, which could hold up to 80,000 tonnes per annum of lithium, and is considered to be the biggest lithium deposit in the U.S.

Good and Cheap Stock No. 4 – Cameco Corporation (CCJ)

Uranium stocks like Cameco Corp. could be solid long-term bets.

Investors are betting that nuclear power could be a big part of our future, as we move away from fossil fuels. In fact, according to the World Nuclear Association, the decarbonization goals of the world’s economies need a significant amount of low-carbon nuclear energy.

Unfortunately, there’s been a massive supply-demand issue, which has sent uranium prices and related stocks to higher highs. Plus, “How is the world going to supply the power to meet the demand for all the electric vehicles being built?” Duane Parnham, executive chair and CEO of Madison Metals. “You can’t meet future electricity demand without uranium. The global fundamental outlook shows that there is no option but to use nuclear energy.”

As of 2022, the company was involved with Cigar Lake in Northern Saskatchewan, Canada. It’s considered to be the second largest uranium deposit in the world. In addition, Cameco is active with McArthur River / Key Lake, which are the world’s largest high-grade uranium mines.

Good and Cheap Stock No. 5 — Kinder Morgan (KMI)
High dividend stocks like Kinder Morgan are a great way to bring in income.For one, the pipeline has now increased its dividend payout in each of the last several years. Two, Kinder Morgan is one of the largest infrastructure companies in North America. It owns or operates about 83,000 miles of pipelines and about 141 terminals. Its pipelines also transport natural gas, gasoline, crude oil, and other critical fuels. Plus, Kinder Morgan’s terminals store and handle renewable fuels, petroleum products, and chemicals.

Three, the company also continues to be one of the most stable, with enough cash cover its dividend. And four, much like the rest of the energy sector, it’s starting to pivot toward lower carbon energy sources, which could provide it with solid growth opportunities.

Good and Cheap Stock No. 6 – Cleveland-Cliffs (CLF)

Another red-hot, good and cheap stock to consider is Cleveland-Cliffs.

For one, President Biden wants half of all cars to be electric by 2030. In addition, the Biden Administration wants to build a national network of 500,000 EV charging stations by 2030.

“The U.S. Departments of Transportation and Energy today announced all 50 states, the District of Columbia and Puerto Rico have submitted EV infrastructure deployment plans as required under the National Electric Vehicle Infrastructure (NEVI) Formula Program established and funded by President Biden’s Bipartisan Infrastructure Law,” as noted by the U.S. Department of Transportation Federal Highway Administration.

That’s beneficial for CLF because the company provides steel for charging stations in the U.S.

Two, we also have to consider that if and when the U.S. upgrades the power grid, it’ll require a good amount of steel, too. Three, as noted by Barron’s, demand for steel could reach record levels in the next 10 years.

Good and Cheap Stock No. 7 – MP Materials (MP)

Keep an eye on rare earth stocks, like MP Materials (MP).

For one, President Biden announced a series of steps to strengthen key U.S. supply chains, including rare earths. Two, there’s substantial demand for rare earths outside of China.  

After all, according to Supply Chain Dive, “Higher amounts of rare earth metals are required in the production of electric vehicles, advanced batteries, wind turbines and other renewable products. An average electric car requires six times the mineral inputs of a conventional car, while an onshore wind plant needs nine times more mineral resources than a gas-fired plant.”

Three, in early 2022, the Department of Defense awarded the company a $35 million contract to design and build a facility to process rare earth elements at its Mountain Pass site.

Four, according to the White House, “As the world transitions to a clean energy economy, global demand for these critical minerals is set to skyrocket by 400-600 percent over the next several decades, and, for minerals such as lithium and graphite used in electric vehicle batteries, demand will increase by even more—as much as 4,000 percent. The U.S. is increasingly dependent on foreign sources.”

With a good deal of demand for rare earths, MP Materials may be in a prime position..

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