Tom welcomes a new guest, Andrew Hoese from Finding Value Finance to the show. Andy runs an educational channel where he digs deep into economic data and conducts chart analysis.
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Andy explains his views on ratio investing with precious metals and how it ties into real estate. Ratio investing can be quite easy allowing one to increase their purchasing power by accumulating ounces in one’s investment stack.
Andy discusses the housing market cycle and demonstrates that we are entering a bullish period for housing demand. This could potentially be very inflationary and may drive commodities higher.
We’ve broken the downtrend on commodities last year and are now making higher highs and higher lows. This looks like a new commodity bull market has just begun.
New housing starts are usually driven by the banking system increasing lending. Inflation soon follows in energy markets. These input costs move throughout the PPI and then into the CPI numbers. Inflation will result in negative bond rates and create losses for bondholders. As a result, there will be a rotation out of stocks and bonds and into commodities.
Market conditions are looking very similar to the 1970s and 80s. Today, the Millenials are coming into the real estate market. We could be on the verge of a massive re-alignment in the price of gold against the monetary base.
Andy sees a continued energy crisis that will last for some time. This crisis seems to be expanding across different energy classes. The market is setting up for potentially very high uranium prices. We could see the largest commodity squeeze of all time.
He explains why investing in royalty companies is a good diversification approach because they have reduced risk from input costs.
Cryptocurrencies are difficult to value but the underlying technology does seem useful. He cautions that it’s hard to understand exactly what one owns in the cryptosphere.
Time Stamp References:
0:00 – Introduction
2:10 – Metal Swap Levels
6:00 – Wealth Measuring
7:45 – Housing Market Phases
16:04 – Business Cycle & Housing
18:30 – A Commodity Bull Market
21:17 – Interest Rates & Dollar
22:54 – Energy Crisis
24:32 – Buying Commodity Equities
26:30 – New Investors & Commodities
28:08 – Uranium & Valuations
30:10 – Volume & Charting
33:10 – A Uranium Squeeze
35:48 – Gold/Silver Trends
37:18 – Rates & Metals
38:27 – Leverage To Commodities
40:26 – Royalty Companies
41:36 – Mining Sector Outlook
44:43 – Investing in Energy
46:00 – Taking Profits
48:30 – Bitcoin Outlook
52:30 – Wrap Up
Talking Points From This Episode
– Outperforming the stock market with precious metal ratio trading.
– Housing markets as a catalyst for the commodity complex.
– The energy crisis and why he expects a massive commodity squeeze.
Guest Links
Twitter: https://twitter.com/Finding_Finance
YouTube: https://www.youtube.com/user/ilikcagrls/videos
#AndrewHoese #FindingValueFinance #PreciousMetals #Gold #Silver #Platinum #Rhodium #Housing #Inflation #Deflation #RealEstate #Commodities #MarketSignals #Macro #Energy #Oil