I was born during the Eisenhower era, when my dad wore gray flannel suits to work, my mom sported a bouffant hairstyle, and the family Chevy featured fins. So it’s no surprise that I have a lot of old school habits: I prefer the telephone to Zoom, I listen to vinyl records, and I like to receive and answer letters.

One of the most satisfying aspects of my job as editorial director is to interact with readers, via their questions and comments to me. To be sure, this correspondence involves emails, not hard copy letters, but it constitutes personal engagement all the same.

I’m grateful that in our TikTok world of short attention spans, many of you take the time to write and send me well-crafted messages. The fastest and easiest way to reach me is through this address: mailbag@investingdaily.com

Let’s dive into the digital mailbox and see what’s on your minds. I edit reader letters for clarity and concision, but I do so with a light touch.

The FedCoin…

“There have been many articles on FedCoin and also on the ‘recall’ of the American dollar. As such, I would appreciate any thoughts that you have on the subject including the validity of such an activity and, if valid, what we should do with our investments.” — Bill L.

To date, the Federal Reserve still does not have a digital dollar, i.e. FedCoin. Nor has it announced plans to create one. The New York Fed is merely studying the feasibility, as well as the potential pros and cons, of the idea.

It’s my opinion, and the opinion of most credible analysts, that we’ll never see a FedCoin. This mythical digital currency is just the study of a hypothetical interbank payment system. What’s more, the idea is inherently unworkable.

For starters, if the U.S. Treasury could simply issue a trillion-dollar coin to finance its spending, it would be creating money that has absolutely no fundamental backing. A FedCoin is an absurd idea that the tin foil hat brigade has seized on to promulgate all sorts of conspiracy theories.

Investors should not make any decisions based on what may or may not happen with the development of a FedCoin or a supposed recall of the U.S. dollar.

The nuclear renaissance…

“Nuclear power is suddenly in vogue, as a way to fight climate change. Will the renewed interest in nuclear last?” — Tom D.

Due to concerns about global warming, many prominent environmentalists who once protested nuclear plants now speak in favor of nuclear energy as a “green” source of electricity.

My own personal evolution is instructive. As a long-haired member of the no-nukes movement in college, I ardently protested nuclear power in the 1970s. Fast forward 40 years and I now embrace nuclear, as a cleaner alternative to fossil fuels. (The story of humankind is a story of endless ironies.)

The search for low-carbon energy is one of the most important long-term investment trends of our time. For all the fuss raised by anti-nuclear activists, the fact remains that nuclear power is a lot cleaner on a day-to-day basis than oil or coal. Nuclear power has gotten considerably safer over the years and it doesn’t emit the gasses that contribute to global warming.

The demand for uranium should remain strong in coming years, which makes uranium mining stocks a good bet.

The U.S. and most other countries import the vast majority of the uranium they use as fuel. With emerging markets stepping up plans to build nuclear power plants, a bull market in uranium is unfolding that will extend over many years. The price of uranium has skyrocketed this year and has further to go.

Portfolio allocations…

“I’m a new reader and would like a clarification on your portfolio allocations. Please clarify your ‘hedges’ position.” — Greg H.

Greg, you’re obviously referring to the recommended portfolio allocations in our flagship publication, Personal Finance. The following pie chart shows these latest recommended allocations.

“Hedges” are generally defined as precious metals, real estate investment trusts (REITs), and commodities, among other investment classes.

Your choices depend on your investment profile and how much risk you’re willing to shoulder.

You’ll need hedges as protection against geopolitical uncertainty, elevated inflation, rising interest rates, the policy whims of the Fed, another impending debt ceiling crisis in Congress, and the lingering pandemic.

Yup, you read that correctly: as summer winds down, we’re starting to see a resurgence in COVID, albeit in milder form, around the country. We won’t be going back to mask-wearing and lockdowns, but COVID’s comeback generates anxiety in society and on Wall Street.

WATCH THIS VIDEO: The “FUD” Factor: Overcoming Fear, Uncertainty and Doubt

Brace yourself for continued market volatility and sell-offs, but you should also stay invested to take advantage of the inevitable rebounds.

Rise of the machines…

“Artificial intelligence is all the rage, but the major players are mega-cap stocks that have gotten pricey. Are there other ways to play the AI trend?” — Kyle M.

It’s undeniable that AI is a mega-trend that’s transforming our lives and investing. But you’re right: investors have piled into the huge makers of AI-centric software and microchips, causing run-ups in their share prices.

A smart bet at this point is to focus on smaller companies in different sectors that are deploying AI but not overly dependent on the technology. I pinpoint such a company, in an article published August 30: This Mid-Cap Stock Is a “Precision Strike” on Artificial Intelligence.

If I’ve whetted your appetite for growth opportunities in technology, you should also consider the insights of my colleague, Dr. Joe Duarte.

As chief investment strategist of the premium trading service Profit Catalyst Alert, Dr. Duarte has unearthed a tiny, unknown company that has developed a revolutionary “black box” technology.

You need to get in on the ground floor of this game-changing opportunity before the investment herd finds out and sends the share price soaring. Click here for details.

John Persinos is the editorial director of Investing Daily.

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