Tavi Costa – The Accumulation Period For Deeply Discounted Resource Stocks Is Now
Tavi Costa, Portfolio Manager at Crescat Capital, joins us to discuss the recent bounce in precious metals, and what’s next for the resource stocks. We start with some of the macroeconomic trends that have led to the recent bounce and if he has changed his outlook or strategy in light of recent developments. Next we review how silver appears to have bottomed before gold, the recent outperformance of silver over gold, and silver stocks over gold stocks all as positive signals for the precious metals sector.
We then shift over to potential catalysts that could bring new generalist investors into the sector, and the conversation touches on the importance of exploration discoveries, area plays, acquisitions, and look ahead to a bit more positive news for the sector. We also look at how it is taking a while for the new generation of investors, that made easy gains in FAANG stocks, hot growth tech stocks, and cryptocurrencies, to process the different reality now that we see a true bear market unfolding and a different economic backdrop as we head towards a further contraction in economic growth.
We wrap up by getting Tavi’s thoughts on if the success in the battery metals theme, and if the run the lithium companies have gone on the last 2 years, may bring in new generalist investors, and what it could mean for the other battery metals mining stocks focused on copper and nickel that have not run as much yet.