Richard “Doc” Postma – Outlook On Fed Policy, Inflation, US General Equities, Commodities, And The Precious Metals Sector

Richard “Doc” Postma joins us to discuss Fed policy, inflation expectations, his more bearish outlook on general US equities, and his longer-term bullish outlook on commodities and the precious metals sector.   We start off with what it will mean if the central bank gets more aggressive with hiking rates, and how inflation tapering down once the year over year figures come in during the summer may help balance things out to some degree.  We look at why he’ll be watching the recent relief rally in US general equities for a place to short them again, with the exception of the biotech sector that he is more bullish on. 


We then move into the commodities and discuss the energy sector and an oil stock he’s been positioned in.  We wrap up with an extended series of questions on what his technical outlook is for gold prices in a few different potential scenarios, as well as a handful of gold mining mid-tiers and junior mining stocks that Doc is accumulating on pullbacks.  

    Mar 25, 2022 25:23 PM

    Doc, any comments on Hycroft Mining, formerly Allied Nevada, HYMC?

    Mar 25, 2022 25:29 PM

    I put this on the Hedgeless thread…I know most of you do your own stock picking on explorers/developers, but have any of you worked with or heard how Sprott Global (Rick Rules old Co.) or Sprott AM, does with retail clients who want to work with them on investing in individual explorer/developer stock selections? Thanks

      Mar 25, 2022 25:36 PM

      Hi Nawanda. I’ve not ever used Sprott before. as a broker, but have heard good things about them from others. They are going to have biases for or against certain companies or management teams, but I guess everyone does, and that is what you’d be paying them for. Cory and I have had Steve Todoruk on the show here a number of times from Sprott and he is very good on following break out stories post-discovery. My buddy Mining Book Guy swears by Sam Broom there at Sprott, if he is still there.

    Mar 25, 2022 25:51 PM

    Excellent. Thanks Doc and Shad. Very informative.

      Mar 25, 2022 25:41 PM

      Much appreciated Lakedweller2. It’s always nice to have Doc on the show and get his thoughts on the general equities markets, other sectors he’s watching (like Biotech in this case), and of course what his technical outlook is on gold and the mining stocks. He threw out a handful of good mining stocks to watch there at the end with Fortuna, Fury Gold, Irving, Bear Creek. and McEwen Mining, as well as a good Oil stock in Birchcliff. Good stuff!

    Mar 25, 2022 25:41 PM

    If I were Doc I would be drinking mai tais and smoking cigars in Hawaii right now.

    Interestingly the Doc mentioned Mux’s soon to be spin out of its copper asset. TNR is a micro market cap and have a 0.36% NSR on the project. Seemingly small but 0.36% of 29.5 billion lbs of copper not to mention the precious metals represents deep value. I’d like to know which micro royalty co can offer such value.

      Mar 25, 2022 25:56 PM

      Good point Jetty on the value of even small royalties on larger projects. I’d submit that most of the royalty companies have solid long-life assets like this when you dig through their portfolios.

      We just had Fred on from Elemental Royalties this week duscussing their new gold stream on the Ming Copper mine has a projected 40 year mine life for example. I’m not sure yet how big the mine life will be on Orogen’s NSR on Anglogold Ashanti’s Silicon/Merlin project but it should be a cornerstone asset for them. Sailfish has those Nevada NSRs that should be worth a pretty penny once Waterton finds a competent operator for them. Alex from Nova Royalty was just on the show recently outlining the huge generational copper assets it has on a few massive copper projects.

      There are some very impressive royalty packages held by Maverix, Metalla. Nomad, Vox. and of course all the larger royaly companiesike Sandstorm, Osisko Gold Royalties, Wheaton Precious Metals, Triple Flag, Royal Gold and Franco Nevada. Inside of their portfolios are some truly stunning long-life royalties and streams that will pay off for decades.

    Mar 26, 2022 26:51 AM

    I got into pot after Ex mentioned owning POTX a few weeks back but chose MSOS because it had weekly options with nice premiums. Sold puts on it, collected premiums, got put the stock, sold calls, collected more premiums, had the stock called away, did a complete circuit. Made good money on it, better than leaving cash sit idle in money management account.

      Mar 26, 2022 26:06 AM

      Wow. Really good trading there Terry. You seem to really have down the options strategies.

      Yeah, I just bought both the ETFs POTX and MJ, and considered MSOS but figured 2 ETFs gave me a pretty diversified exposure. However, you’ve likely done much better short-term trading with those options. Nicely done man!

        Mar 26, 2022 26:28 AM

        I wasn’t so fortunate using this strategy with RSX. Didn’t expect that war to happen .

    Mar 26, 2022 26:51 PM

    Doc: “It’s the best time in the world to be purchasing some of these [juniors].”

    Also Doc: 85% cash.

    Mar 26, 2022 26:44 PM

    Try being old school career military and new school career prosecutor for the two jobs you held in your life. Then try to think about buying pot stocks. Talking about being out of your element.