Nick Hodge – Investing Themes For The Commodity Super-Cycle In Uranium, Lithium, Copper, And Gold
Nick Hodge, Co-Owner of Digest Publishing and editor of Foundational Profits and Hodge Family Office, joins us to review investing themes for the commodity super-cycle in uranium, lithium, copper, and gold.
We kick things off with the sentiment reading and key takeaways from the Vancouver Resource Investor Conference, and which commodities and related resource stocks are trending higher, which ones are improving but not well bid yet, and which metals or energy sector components are still correcting downwards. This is a wide-ranging discussion that gets into macroeconomic forces behind some of the moves in certain sectors, if we are going to see a soft landing in the economy, reviews the recent relief rally in general US equities, yield curve inversions with different duration bonds and interest rates, oil and nat gas and overall energy sector, critical minerals, battery metals, and much more.
The Battle Between FANG And BANG Is About To Get Very Interesting
Jesse Felder – February 8, 2023
“The chart below plots two custom indexes: FANG (META, AMZN, NFLX, GOOG) versus BANG (GOLD, AEM, NEM). Clearly, there has been some back and forth between the two with the BANG stocks taking the lead and holding it over the past year or so. Frankly, I’m surprised they haven’t done better but more on that in a bit. As for the FANG stocks, it’s pretty remarkable to see them generate essentially zero return as a group since mid-2018, even after their strong runup to start the year.”
“The situation for the BANG stocks, still broadly ignored by investors, is very different. Free cash flow has soared more than four-fold since I first wrote about them. The rise in aggregate market cap has been far less. The result of all of this is that the BANG stocks have outperformed the FANG stocks even while they have gotten significantly cheaper and the latter have gotten significantly more expensive relative to their respective trends in free cash flow.”
The group making up BANG is missing Goldcorp fwiw. I hadn’t realized Jesse’s original article was going on five years old. Wonder if it will take another five to reach his conclusion?
Yeah, since the original article was penned, Goldcorp was swallowed up by Newmont, so they are still banging along… just as once company instead of 2 now. And now Newmont is growing into an even larger super-major by bidding to acquire Newcrest. It is the same for Barrick since that article, that has since acquired Randgold.
I guess to make BANG still work he could substitute Gold Fields for the old Goldcorp slot.
If he wants to emmulate the FAANG acronym of old into BAANG, then he could also add in AngloGold Ashanti. 😉
Thanks. I had forgotten about that acquisition.
Rick Rule: Uranium Due for a Price Response, Silver’s Incredible Potential
Investing News Network – Feb 6, 2023
Rick Rule of Rule Investment Media has long said Japanese reactor restarts will be key for the uranium industry. With restarts now firmly underway and other positive factors at play, he’s expecting prices for the commodity to start rising.
“I think the combination of reduced supply, increased demand and the fact that a lot of the overhang is now in private hands — not available for sale — means that you’re going to start seeing price response in the uranium market. You are also going to see a much firmer term market,” he said at the Vancouver Resource Investment Conference.
0:00 – Intro
0:30 – VRIC sentiment, why Rick attends
2:28 – Uranium due for a price response
4:47 – Key uranium factor to watch
6:39 – Details on Rick’s Silver Bootcamp
10:01 – Silver gains in previous cycles
12:37 – How silver performs in a recession
15:26 – Rick’s current macro outlook
16:49 – Outro