Beyond the Headlines: The Malaysian Critical Mineral Hedge

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What’s Happening

President Donald Trump and Malaysian Prime Minister Anwar Ibrahim signed a comprehensive trade agreement and a critical minerals pact in Kuala Lumpur. The deal will lower tariffs and non-tariff barriers, granting U.S. companies preferential access to Malaysia’s markets for chemicals, machinery, vehicles, and agricultural goods. Malaysia also committed to unrestricted exports of rare earths and critical minerals to the U.S., while partnering with American firms to develop its mining sector.

Why It Matters

The pact secures Malaysia as a reliable source of rare earths and critical minerals for the U.S., reducing dependence on China, which dominates global supply and has tightened export controls. These minerals are essential for electric vehicles, semiconductors, and defense systems, making supply chain resilience a strategic priority. By guaranteeing unrestricted exports and partnering on mining development, the U.S. gains a foothold in Southeast Asia’s resource sector.

Investing Takeaway

Rare earths and critical minerals are very real storylines with real profit opportunities that we’re following, which is why we want to share an additional investing resource with you. To help navigate that market, our friend Matt Warder of The Coal Trader just launched a sister publication called The Rare Earths Trader, and you can find the introduction to his three-part series on investing in rare earth elements here.

What’s Happening

Social Security benefits for retirees will increase by 2.8% in 2026, marking a slight uptick from this year’s 2.5% adjustment. Starting in January, the average monthly check will rise to $2,064, up $56 from 2025, according to the Social Security Administration. The annual cost-of-living adjustment (COLA) is tied to inflation data from the third quarter, which recently showed higher prices for essentials like food, electricity, and used vehicles.

Why It Matters

For the 53 million retirees relying on Social Security, even modest inflation can erode purchasing power, especially since 40% of Americans over 65 depend on these benefits for half or more of their income. The COLA helps offset rising costs, but many seniors say it falls short. Higher Medicare Part B premiums, expected to consume nearly 40% of the average COLA increase, further limit the benefit.

Investing Takeaway

We always talk about building a self-reliant playbook as a Wealth Builder, and part of that playbook is owning income stocks so your financial security isn’t tied to the government’s COLA adjustments. When researching income stocks, Chief Stock Picker Bill Patalon says to focus on “real income.” It’s what’s actually left after taking taxes and inflation into account. But also keep in mind that, when a yield seems too good to be true, it normally is, making it not sustainable. 

What’s Happening

Swiss pharmaceutical giant Novartis $NVS ( ▲ 0.85% )  announced it will acquire Avidity Biosciences Inc. $RNA ( ▼ 0.03% )  for about $12 billion, paying $72 per share — a 46% premium to Avidity’s last closing price. The deal, expected to close in the first half of 2026, will follow Avidity’s spin-off of its early-stage cardiology programs. Avidity specializes in RNA therapeutics, particularly antibody oligonucleotide conjugates, which target muscle tissue.

Why It Matters

With between $236 billion to $400 billion in pharmaceutical sales at risk between now and 2030, the biotech sector is heading toward one of the biggest “patent cliffs” in history. The takeaway is dealmaking will heat up as Big Pharma looks to replenish pipelines and bolt on next-generation therapies. Novartis’ move follows a wave of major deals in 2025, including Johnson & Johnson’s $JNJ ( ▲ 0.52% )  $14.6 billion purchase of Intra-Cellular Therapies, Merck & Co Inc.’s $MRK ( ▲ 1.65% )  $10 billion acquisition of Verona Pharma, and Sanofi’s $SNY ( ▲ 1.0% )  $9.5 billion buyout of Blueprint Medicines. And it’s not just the patent cliff driving these deals. It’s also the new era of personalized and precision medicine and the growing cost of developing new drugs that have companies hunting for companies to buy .

Investing Takeaway

We expect to see this big pharma buying blitz continue in 2026, for all of the reasons mentioned above. We have several biotech investing opportunities throughout our portfolios in SPC Premium, and we’re eyeing a few more opportunities as we speak.

That’s it for this issue.

Take care,