The Market Huddle Chasing The Digital Sky Daddy (Guest: Chase Taylor)
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Nov 29, 2025 
Chase Taylor, Founder of Pinecone Macro Research, dives into the electrification of the global economy and its impact on commodities, particularly aluminum. He highlights the crucial connection between aluminum production and electricity, emphasizing supply trends from China. Chase also unpacks the 'electric stack' concept and how it's driving metal demand. With insights on China's fiscal stimulus and innovation, he shares strategies for investing in the region while addressing broader economic themes like the K-shaped recovery and market volatility.
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Aluminum Structural Deficit Meets Electrification
- Aluminum prices are poised to re-rate higher due to structural demand from electrification and sustained high electricity costs.
- China production caps plus rising power costs create a multi-year deficit dynamic supporting higher prices.
Electric Stack Creates Cross‑Industry Metal Demand
- The 'electric stack' bundles batteries, magnets, motors, power electronics and embedded compute into one demand ecosystem.
- That shared stack drives correlated demand for metals (aluminum, lithium, nickel, cobalt) across EVs, drones, robots and grid storage.
Use Baskets For Commodity Exposure
- Avoid single‑stock risk in commodity producers and build a diversified basket across regions.
- Spread exposure across U.S., Europe and China names to average valuation and political risks.