1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
Preparing video
Key points:
US AI and energy-driven momentum seen as having substantial runway Viridis Mining and Minerals (ASX:VMM) highlighted as a key critical minerals exposure Santos (ASX:STO) and BHP (ASX:BHP) cited as shifting capital offshore due to rising sovereign risk
Chris Judd from Cerutty Macro Fund outlines a growing divergence between the United States and Australia, highlighting what he views as a powerful US momentum trade driven by AI and energy. Judd points to US earnings growth, surging data centre capex and domestic energy production as key supports. He argues that Washington treats winning the AI race against China as “existential”, so he does not expect the Federal Reserve to deliberately tighten policy to choke off AI-related investment.
On the ASX, Judd points to Viridis Mining and Minerals (ASX:VMM) as a preferred way to gain exposure to the critical minerals theme, which he sees as central to sovereign security. He expects the rare earths race to broaden beyond the US and China, with the EU, Japan, South Korea, India and others building their own supply chains. In his view, Viridis’ recent demonstration plant and upcoming DFS and offtake news keep it “catalyst rich” with further upside potential.
Judd also flags rising sovereign risk in Australia. He cites Santos (ASX:STO) shifting capex towards PNG and Alaska, and BHP (ASX:BHP) committing over US$10 billion to an Argentinian JV, as evidence of capital moving offshore. He warns that budget uncertainty, higher rates and property sensitivity are hurting small caps, and worries this environment may push ambitious younger Australians and capital overseas.
