Erik Wetterling – The Advantages Of Portfolio Diversification In The Current Tough Markets

Erik Wetterling, Founder and Editor of The Hedgeless Horseman website,  joins us to unpack why he is using diversification as a strategy in his precious metals portfolio of junior mining stocks.  We discuss which kinds of gold and silver companies Erik is looking at to position in within his portfolio, where there is a healthy balance of both “probable growth” and “margin of safety”.   He points out that as the sector corrects, that the downside versus upside risk/reward setup becomes increasingly more attractive to companies that can create value with the funds they raise and put into work programs.



Click here to visit Erik’s site.

    Jun 16, 2022 16:45 PM

    Good thoughts from Erik the Great as well as Ex and Cory. Lots of good points. Thanks guys.

      Jun 16, 2022 16:52 PM

      Much appreciated Charles. Yes, it was an interesting topic on different strategies for diversification within one’s portfolio of resource stocks. Cheers!

      Jun 16, 2022 16:18 PM

      Glad you found it of value Charles!

      All the best,

    Jun 16, 2022 16:47 PM

    Dollar Index : June : Gap Filled : Preliminary Target 109

      Jun 16, 2022 16:54 PM

      Wow, a US Dollar at 109 would be a level not seen in some time, and a bit of a wrecking ball for commodities prices and emerging market countries holding debt in US dollars.

        Jun 16, 2022 16:37 PM

        Extensions and expansions target that zone, and the last I checked Rick Ackerman’s is about the same. However, even so, a ‘strong dollar’ in these times may not mean a commodity collapse, unless there is true deflation. A secular rise for the Dollar and Gold – together! – is my thinking.

          Jun 16, 2022 16:02 PM

          Yeah, I was thinking more about continued pressure on base metals like copper, nickel, zinc, etc… more so than precious metals. We often see both gold and the US dollar travel in tandem to the upside as safe havens during times of market instability.

          Also, as for Rick A. he’s a staunch deflationist, so he is likely viewing the higher dollar in that sense.

            Jun 16, 2022 16:41 PM

            I usually just follow the numbers, but now with one big exception: NatGas. The drop last week into Tueday’s third largest in history was telegraphed by the Freeport LNG plant fire/explosion which was reported well in advance; however, the depth of the disaster was not known immediately – leading to Tuesday. It could have been sabotage.

            Jun 16, 2022 16:44 PM

            I worry about pressure on base metals also as everyone and their brother has been projecting a massive future in getting away from petroleum products.
            Since markets are forward looking, this puts pressure on those who I don’t like to fabricate reasons to suppress price ….just me.
            Forgot to mention … there are shortages with decreased demand..
            Added: I contacted my authority on Corporations and she said Corporations are begging for higher commodity prices … she was fired 3 days ago.

    Jun 16, 2022 16:59 PM

    RSI is not confirming the higher high on the UUP daily chart.

      Jun 16, 2022 16:04 PM
        Jun 16, 2022 16:12 PM

        Tomorrow could make or break at least the next several weeks. It will be bad news for the bears if it’s like today…

          Jun 16, 2022 16:23 PM

          Somebody mentioned that tomorrow is a triple witching day. I don’t know if it is, but if it is that means it is a “free intervention” day. So I guess the prices will be the point where the Banks make the most on option expirations. … isn’t that how it works?

            Jun 16, 2022 16:31 PM

            That sounds about right.

            Jun 16, 2022 16:38 PM

            Just checked. It’s Quadruple Witching Friday!

            “Quadruple witching dates occur four times a year on the third Friday of March, June, September, and December. Market activity on these days is typically highest during the last trading hour as traders try to move on these contracts.”


            Jun 16, 2022 16:19 PM

            Good point BDC. The last hour of tomorrow’s trading will be power hour.

            May everyone have prosperous trading to end the week. Ever Upward!

            Jun 16, 2022 16:39 PM

            I am taking my battery out of my mouse until the last hour even if it is wifi.

            Jun 16, 2022 16:12 PM

            It just depends on which stocks, which sectors, and what drivers the quad witching rebalancing may have, so in some cases in makes sense to position in front of it. Still it may be better to look for more clarity as next week opens up, and more importantly, look to see how pricing has trended in two weeks when the month of June and the 2nd Quarter come to a close.

        Jun 16, 2022 16:36 PM

        I like your thinking on a double top.

    Jun 16, 2022 16:19 PM

    Also throw in the mix that managed money in bulk drives direction. Take for example the amount of funds that Blackrock has to pick winners or losers. Piece of cake if manipulation is not prosecuted. Or JP Morgan when they are the Banker of the US Government and have access through the NY Fed to the Treasury.
    When you realize that massive fund availability can overwhelm retail, you can realize the reason why a former Goldman Partner, Gary Gensler, the Head of the SEC, comes after Reddick/Robinhood type activities because they are using the same method of amassing large funds to manipulative price direction as the managed money funds. It is like one drug cartel against another.
    As a result, things that were illegal before deregulation are now enabled as “legitimate money” has competition at their game.
    Retail, in the meantime, have to be cautious as there is going to be little activity in any stocks except those targeted by managed funds.
    The transition to the casino at the expense of traditional fundamental investing is difficult when there are no forms of alternative investment whether it be real estate, bonds, interest bearing savings, collectibles, etc unless someone destroys everything …. which appears close for many reasons. There will be another massive QE ….

      Jun 17, 2022 17:23 AM

      Blackrock and JP Morgan are behemoths that can push markets around to a degree just with their sheer size, and they have become financial monsters.

      Jun 17, 2022 17:35 AM

      “It is like one drug cartel against another.”
      With their Media Mafiya promoting loaded dice!

    Jun 17, 2022 17:45 AM

    Aussie miners closed Friday +5-6%

      Jun 17, 2022 17:25 AM

      Thanks for the heads up Terry. It would be nice to see that translate over to the North American miners for Friday as well. Fingers crossed…