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Markets ended the week on a high note, as a cooler-than-expected inflation report pushed major indices to new record highs. Gains were broad, led by tech, industrials, healthcare, and biotech. Precious metals paused their rally. Gold and silver fell 3% and 6%, respectively, while crude oil rebounded nearly 8%.

Rare earth elements (REEs) are back in the headlines in recent weeks after China’s tightening of export controls, reigniting US-China trade tensions and fueling a global scramble to secure supply chains.

In parallel, it has ignited another rush into REE and related stocks, with the VanEck Rare Earth & Strategic Metals ETF (REMX) up ~90% YTD.

REEs are a group of 17 chemically similar elements (eg. Neodymium, Dysprosium) that are a subset of the periodic table. Despite the name, they are not actually rare, and are found commonly in the Earth’s crust.
However, they are rarely concentrated enough to make extraction economically viable, and the process is cumbersome, expensive and generates signficant environmental waste.

REEs are foundational for nearly all modern high-tech and defense sectors. Here are some examples.

China now accounts for over 90% of global rare earth refining and processing capacity, giving it strategic leverage over the rest of the world. For decades, developed nations avoided this industry because the process is highly polluting and involves complex separation technology. China accepted these environmental costs, and invested early in building refining capabilities.

Other nations are aggressively building secure, independent supply chains to safeguard their industries.

The week ahead is poised to be one of the most significant of the quarter, dominated by three major events. First, the peak of the Q3 earnings season, with reports from five of the seven “Magnificent Seven”. Second, the Federal Reserve's FOMC decision and commentary from Chairman Powell, where the market is currently pricing in a 98% chance of a 25 basis point rate cut. And third, key global trade talks and developments, particularly those involving the US and China.

(subject to Govt shutdown ending)

Ever heard of Tide, Pampers, Gillette and Oral-B? These are just a few of the iconic, billion-dollar brands under Consumer Packaged Goods (CPG) giant Procter & Gamble. P&G is the largest consumer staples company in the world, and serves consumers globally across 70+ countries, focusing on essential, daily-use categories. Through superior product performance, innovation, and unmatched distribution, P&G brands have become household names across the world and driven strong brand loyalty.

P&G is prized for its stability. Its revenue has slowed to a 3% CAGR since 2022, but it has grown its earnings and operating cash consistently. Although its balance sheet can be stronger, P&G holds nearly $9.6B in cash. Its most recent earnings, released last week, it reassured investors, by reporting an earnings beat, 2% organic sales growth and maintained outlook. The main challenge is persistent margin pressure. However, management expects that applying AI to distribution, marketing and other facets of the business, will boost margins and earnings in the coming quarters.

P&G currently sits just above a key, multi-year support level of $149. More importantly, when zooming out to the weekly chart, it sits right above its 200-week moving average, a level it has tested and bounced off numerous times since 2015. While it may not be a high-flying, exciting tech name, P&G can be a valuable defensive player in your portfolio when the broader market starts to look shaky, and capital rotates towards safety.

Ardent Health Services is a leading US hospital operator specializing in acute care services across six states, primarily focusing on mid-size urban communities. The company operates a network of 30 hospitals and over 280 sites of care. By focusing on essential, non-discretionary healthcare (such as emergency care, maternity, and critical surgery), Ardent benefits from strong, stable secular demand in the domestic healthcare sector.

Ardent’s key advantage is its Joint Venture model. It partners with major academic and non-profit medical centers (like UT Health East Texas), which provides Ardent with local brand loyalty and enhanced patient networks while retaining operational control. This model reduces acquisition risk and provides reliable patient volume. Furthermore, its focus on mid-size, high-growth urban markets and a financially flexible, asset-light structure (leasing many facilities) allows it to quickly pursue strategic acquisitions and focus on operational efficiency.

Ardent Health is growing its top and bottom-line at a respectable pace, with revenue up 12% YoY in Q2 2025, and EBITDA up 39%. It is making strides towards bolstering its balance sheet, with Lease-Adjusted Net Leverage (total debt plus the value of its long-term operating lease payments, relative to its EBITDA) down to 2.7X from 4X a year earlier. However, operating cash flow remained flat YoY, and the company faces headwinds from persistent insurance payer claim denials and the future risk of Medicaid funding cuts.

Its primary risk is the sector being inherently exposed to reimbursement risk from both government (Medicare/Medicaid) and commercial payers, which can impact both earnings and cash flows. While its JV model provides stability, integration risk remains a factor with every new acquisition. Lastly, the company operates in a sector susceptible to rising labor and supply costs, which could quickly reverse recent margin improvements if inflation pressures return.

Ali is a full-time equity trader and investor based in Dubai, and the founder of First Mile Investing. He left his corporate career in 2024 to pursue his passion for the markets. He founded First Mile Investing to help beginners take their first confident steps into investing, with the goal of making the process less intimidating, more accessible, and empowering for everyone.