John Rubino, publisher of his newsletter over at Substack, joins us for wide-ranging discussion on the macroeconomic implications for markets, based on the potential for an uptick in commodities prices and inflation metrics, and how those tie into the future health of the economy, and expectations around both monetary and fiscal policies. We review prior crashes and recessions and some of the leading or lagging economic data we had heading into those events. We also debate what kind of recession we may see and different scenarios on how that may affect general US equity markets and the precious metals sector.
With regards to gold stocks, John is cautiously acquiring the best quality names, which he believes have management teams that are executing on doing the right kind of good work to keep building value. By focusing on the best-in-class quality companies, he feels they will survive and bounce back, regardless of if we see a sector-wide correction in a “sell-everything” type of broad market correction or crash. He highlights both the series of consistently high-grade drill results from Snowline Gold (SGD) (SNWGF), or the solid operations report and continued production growth from Sandstorm Gold (SSL) (SAND) on their royalty portfolio, as examples of solid companies that he has been comfortable accumulating, even with the potential risk of a sector pullback.
We wrap up talking about how he views the commodities sector at present and heading into the potential economic contraction. John still sees good opportunities for investors who are using the pullbacks in many resource companies to continue acquiring the best quality companies in the oil, copper, and uranium stocks and remains bullish on them in the medium-term to longer-term.
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