Nick Hodge, Co-Owner of Digest Publishing and editor of Foundational Profits and Hodge Family Office, joins me for an expanded conversation into the macroeconomic data that is moving the general equities markets and the commodities. We take a deeper dive into the fundamental and technical reasons he remains constructive for oil, gold, and uranium stocks, and what he doing in his own portfolio.
We start off discussing how the inflation trends and economic data is shaping the view of a potential Fed rate cut in September, and what the actual impact of a single cut or 2 cuts this year would be for many market sectors. Nick outlines the potential effects the rate cuts could have on commodities like gold and copper, but also real estate, utilities, small cap stocks, and other interest rate sensitive sectors. He is encouraged by the more subdued volatility across many asset classes and believes that the general equities are poised to keep making more all-time highs for the balance of this year.
When reviewing the commodities sector, he points to both oil and gold stocks as 2 areas he is positioned in and constructive on the setup in both commodities and related resource stocks. Nick also shares his personal experience, key takeaways, and future considerations having been on the Yukon site visit tour, as the news broke about the heap leach failure at Victoria Gold’s (TSX: VGCX) Eagle Mine last month. He discusses their balance sheet and ongoing concerns, and what impact it may have on permitting and future heap leach proposals in the Yukon for companies like Banyan Gold (TSX.V:BYN)(OTCQB:BYAGF) and Western Copper and Gold (TSX: WRN) (NYSE: WRN). He also floats the idea that Hecla Mining (NYSE: HL), being the only operator still producing up there, may take the opportunity to consolidate more companies in the Yukon.
Wrapping up, Nick unpacks why he is still bullish and remains a buyer on dips in the uranium sector, believing the bull market can continue in uranium equities for some time to come. He points to the recent acquisition of Fission Uranium (TSX: FCU) (OTCQX: FCUUF) by Paladin Energy (ASX: PDN) (OTCQX: PALAF) as a constructive transaction in the sector, and recent discoveries by CanAlaska Uranium (TSX.V: CVV) (OTCQX: CVVUF) and Skyharbour Resources (TSX.V: SYH) (OTCQX: SYHBF) as 2 companies that have seen good exploration news rewarded.
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