Wharton's Jeremy Siegel says it's 'scandalous' the U.S. doesn't have a rare earths reserve

Core Viewpoint - China's dominance in rare earth materials poses a significant threat to Western supply chains, prompting calls for the U.S. to establish a strategic reserve of these metals [1][2]. Group 1: Strategic Reserve Proposal - Jeremy Siegel emphasizes the need for a rare earth strategic reserve, criticizing the U.S. for allowing China to monopolize 90% of the refining process [2]. - The U.S. has previously established strategic reserves, such as the Strategic Petroleum Reserve in 1975, highlighting the importance of securing critical resources [3]. Group 2: Trade Conflict and Market Impact - The intensification of the U.S.-China trade war, marked by President Trump's threats of "massive tariffs," has led to a significant market downturn, erasing $2 trillion in value [2]. - Siegel expresses confidence that the trade conflict will be resolved before the November 1 deadline, suggesting that Trump's statements are part of a negotiation strategy [4][5]. Group 3: Market Recovery Outlook - Following the trade talks, the market is expected to rebound, with the S&P 500 showing early signs of recovery, regaining about 40% of its losses from the previous Friday [6]. - Siegel predicts that once the trade issues are resolved, the market could continue to reach new highs, supported by positive economic indicators [6].