Nick Hodge, Co-Owner of Digest Publishing and editor of Foundational Profits and Hodge Family Office, joins us for a longer-format discussion on the beginning of the Fed rate cutting cycle, as shift from growth to value sectors within US equities, and the case for higher commodities prices in copper and uranium to fuel policy initiatives. We also get a recap on his recent site visit in Peru to visit the flagship exploration project Hannan Metals.
When looking at the macroeconomic factors moving markets, we discuss how the beginning of the central bank rate cuts will impact rate-sensitive sectors like utilities, real estate held in REITs, the financial sector and gold. This brings up the recent trend where money is rotating some out of the magnificent 7 and growth tech stocks, into those types of value sectors, including consumer staples and hard assets.
Shifting over into the commodities and resource stocks, the conversation gets into all of the policy initiatives for the green transition in energy, and EVs, and how the move from coal to nuclear power is obvious, but will require more production from uranium mines, as well as more lithium and cobalt resources to come online for batteries. We also review all the projections around A.I. data centers and how few generalists are really considering the massive amounts of copper that are going to be required. This brings up the point about the long lead times needed to bring mines in to production, and that something needs to be done to expedite permitting bottlenecks. Nick points to the timeline of over a decade to finally see the recent positive permitting outcome for Perpetua Resources (Nasdaq: PPTA) (TSX: PPTA) authorizing the Stibnite Gold Project for their antimony and gold, as an example of how long these processes can take, and the patience required as resource investors.
Wrapping up we discuss the site visit he just returned to from Peru, visiting the flagship Valiente Copper-Gold Project for Hannan Metals (TSXV:HAN)(OTC PINK:HANNF), and the exploration upside present, and some of the unique observations made seeing the project in person and talking to local community and stakeholders.
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