As we anxiously await The Donald’s second State of the Union address, let’s look at the markets and where to invest next, if you’re not in already.

The biggest risk these days is when the AI Reaper comes for your stock. We’ve seen software companies’ prices decimated because of the AI Revolution, perceived or otherwise. Avoiding 40% drawdowns is imperative. Check out this post from X:

70-75% of those companies can be plausibly called “AI victims.” That’s not where we want to be.

Another problem is cartel risk. Despite yesterday's unrest in Mexico, things are calming down. I’m not crazy about the situation down there, but to stay out of silver much longer would have been folly. 

But my former overexposure to silver miners needed paring back, which I’ve done. As for the rest of my portfolio, I’m “diversified” amid the metals rally and dollar weakness. But I’m still avoiding tech. Let’s look.

Silver - 40%

I thought silver would head down at least to the $55-$60 area, but that didn’t happen. In fact, we never broke the $70.93 level I thought would lead to a bigger sell-off. And now we’re sitting just under $88, with a new upside target of $113. I’ve reinvested in some old friends. Silver miners now make up 40% of my portfolio.

AG

My timing definitely could’ve been better, but AG has rallied so hard over the last 3 sessions.

The company explicitly describes itself as “focused on silver and gold production in Mexico,” operating four producing underground mines there (Santa Elena, San Dimas, Los Gatos JV, La Encantada), as well as Mexican development projects. Only its Jerritt Canyon mine is in Nevada.

Though it’s the most heavily exposed to Mexico, it’s rallied the hardest. In the near term, AG is targeting $32.

CDE

Again, this has rallied hard, but hasn’t recaptured its previous high like AG has. Still, CDE is now targeting the $33 area.

Coeur is a North American producer with multiple mines in the US, but it owns the La Preciosa project in Durango and other Mexican assets.

HL

Among the big silver stocks, HL took the hardest hit after January 30th. It still hasn’t established a new upside target, but I imagine it will soon.

EXK

Endeavour Silver is a leading mid-tier silver producer with a solid foundation for long-term growth and expansion. I wanted a smaller stock with more torque to add to the portfolio.

EXK is targeting $17 first, then $19.35.

Brazil - 20%

My friend and Daily Reckoning editor Adam Sharp got this right last year. I was slow to rotate into Brazil, but I’m fixing that now.

PBR

Petrobras, Brazil’s leading oil company, has had a stellar 2026 so far.

Not only is Petrobras boasting record exports for Q4 2025, but it’s looking into opportunities in Venezuela. Output was up 18% year-on-year.

VALE

Vale is a Brazilian company that specializes in the production and extraction of iron ore, iron ore pellets, manganese, and other ferrous products, as well as nickel and its by-products, and in logistics services.

Once Vale recaptures its previous highs, it’ll create new upside targets.

Uranium - 20%

Uranium is a compelling opportunity because it sits at the center of a structural bull market. Several factors work in our favor: tight supply, a rising nuclear build‑out, and an explicit policy support that new mine supply can’t offset.

After a decade of underinvestment, mine closures and shelved projects mean primary production is running in a structural deficit, with inventories and diminishing secondary supplies. Our friend Rick Rule may be right that the easy money has already been made. But that doesn’t mean there isn’t much more to be made.

DNN

Denison Mines Corp. is a Canadian uranium developer and producer. The chart is targeting $4.40 and then $5.10, but the upside is much higher.

NXE

NexGen Energy is another Canadian uranium developer and producer. It currently targets $16.75, an already 35% rise. 

Copper - 20%

Byron King and Matt Badiali have been right on copper since last year. I chose not to invest in FCX, as that’s the usual trade. Here are my two copper picks.

HBM

Hudbay is an old friend I sold a while ago. But since the end of November, it rallied hard.

The chart looks like it’s formed a bull flag and is breaking to the upside. The next upside target is $31.20, which would make a 20% gain.

CS.TO

Capstone Copper is a mid-tier copper producer with multiple assets and a clear path to production and cash-flow growth… if new projects ramp. It has a higher beta to copper than FCX, plus more potential for multiple expansion if they execute properly and copper continues to rise.

It has no upside targets yet.

Wrap Up

As far as I can see, the only market segments AI can’t hurt are metals and oil. We’re back into silver and have added Brazil, uranium, and copper to the portfolio to balance it out.

A weak dollar will help this portfolio, and that’s what The Donald wants.

Get the popcorn ready for tonight’s State of the Union address, and I’ll be back tomorrow to talk about it.

Have a great day!