Nick Hodge, Co-Owner of Digest Publishing and editor of Foundational Profits and Hodge Family Office, joins us to review the importance of not getting hung up in calendrical time frames, but rather the cyclical time frames of various markets, whether general US equities, gold, oil, or the coming commodities supercycle. Wall Street’s obsession with measuring year-to-date performance or quarterly benchmarks can distract investors from recognizing when the legitimate topping and bottoming periods occur in various markets, and when to rotate into and out of various sectors.
This is a wide-ranging conversation with Nick that gets into a number of macroeconomic data points that are important with regards to market expectations around Fed monetary policy, that continues to react to inflation, or jobs reports, or manufacturing data, or the strength of the consumer. This all ties into the responses we see in bonds and interest rates, as well as moves in the US dollar. These larger macro moves, in tandem with geopolitical tensions, have contributed to the moves in gold, oil, and the commodity sector at large; however, Nick sees a period coming where a contraction in the economy may hurt some commodities, while the realization that bad news is actually bad news may be a longer term sentiment driver into the precious metals and related resource stocks.
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