Sean Brodrick – The Trump Trade Post-Election Has Been Buy Crypto And Tech Stocks, But Sell Gold And Silver
Sean Brodrick, Editor of Wealth Megatrends and contributing analyst to Weiss Ratings Daily, joins us to unpack the post-election “Trump Trade,” which has been strong buying in cryptos, crypto stocks, tech stocks, and large US equities, but conversely strong selling in gold, silver, commodities, and resource stocks. We also discuss renewable energy and nuclear energy trends, as it relates to policies under question now from the 2022 Inflation Reduction Act.
We start off reviewing the correction and consolidation seen over the last 2 weeks in gold, silver, and the PM stocks, and why Sean could see a corrective move in the yellow metal back down to $2475. He explains why he sold many gold and silver equities last week to pull profits, and rotated more funds into Bitcoin via the iShares Bitcoin Trust (IBIT) and crypto related stocks like MicroStrategy Inc (Nasdaq: MSTR) and Marathon Digital Holdings (NASDAQ: MARA) to keep riding that trend higher. This leads to a discussion on the dynamics around gold versus bitcoin, and the different drivers for each. Sean points to 3 key factors in policy changes and company adoption of cryptos that has been bullish for that sector, but also makes the case that despite the corrective move in gold, silver, and the PM equities, that he still believes there is far more upside left in the ongoing precious metals bull market medium to longer-term.
The conversation then pivots into the opportunities Sean is seeing in US equities, particularly in online finance and fintech with ETFs like Amplify Transformational Data Sharing ETF (BLOK), and companies like Block, Inc. (NYSE: SQ). Additionally, Sean remains constructive on large companies and mega-cap tech stocks that can weather the higher for longer interest rates, like Nvidia, Amazon, and Alphabet/Google.
Next we discuss how the Trump administration has been vocal about revoking portions of the Inflation Reduction Act targeting funds for renewable energy, critical minerals, and even nuclear power. Sean believes sectors like wind and solar energy may indeed languish, for a number of reasons, but is far more bullish on the uranium equities and nuclear power stocks. We wrap up with a nuanced discussion on the importance of having a diversified investing approach and how Sean approaches his own diversified portfolio.
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7% comeback for Paladin(PDN) today but 1M lb. cut in 2025 guidance is pretty significant for them
It has been difficult for most of the larger uranium producers to really hit their production guidance lately, whether it’s Cameco, Kazatomprom, Orano, Paladin or BHP.
Yet demand for nuclear power grows every day.
It’s a perfect storm building in the supply/demand fundamentals for uranium mining stocks…as it has been the last 4+ years now.
At least more of the smaller domestic US producers have been starting to ramp up production and seeing revaluations.
D.O.G.E Memecoin Rockets 100% as Traders Savor Elon Musk’s Strong Ties to President-Elect Trump
By Shaurya Malwa – Coin Desk – Nov 8, 2024
“The parody Department of Government Efficiency (D.O.G.E) memecoin has surged by 100% in the last 24 hours, boosting its trading volumes and demand.”
“Elon Musk’s public discussions about forming a real ‘Department of Government Efficiency’ (D.O.G.E.) to streamline government spending have spurred the rise of this parody token.”
“The proposed department, abbreviated as D.O.G.E, will seek to make government spending of taxpayer money more efficient while streamlining departments that handle spending.”
https://www.tradingview.com/x/WthxL4fU/
NatGas : Current Target Zone
“CFD1”
USD making an almost 5 year high…
Silver getting clipped, not sure if it is settling here or just starting a downtrend.
Good chart Dan. Yeah, Silver has had a rough slog in this recent sell down, but it tends to overdo it on the upside and downside.
It’s just wild to have seen Silver finally break out above key resistance at $32.50, where it did quickly jump up above $35, but since then in mid-October, it’s really fallen out of bed. Hopefully, Silver finds it’s footing soon, and starts to base and consolidate. Any key support levels you are watching?
I’m not sure but think the USD may make a bit of a run up to 1.07/ 1.08ish… not technical but just a ballpark figure, that may push silver into the 29s but I think that’s it IMO.
Nat Gas is looking interesting. I have gone short for a couple minutes but am nimble enough to get out very quickly.
Yeah, good point. The strength of the US Dollar has been a wrecking ball in the resources and in particular to gold and silver prices lately… especially when a few months back when so many were convinced the dollar was going to keep heading lower and break down through 100 in the 90s. Just the opposite has played out, and some of that is a function of how bad other global currencies in the DXY basket have fared in relation.
I have been accumulating SCZ again also… it’s been left for dead again, 😒
Agreed. I actually added a bit more to my Santacruz Silver position this Monday, because I was impressed with their 3rd quarter silver equivalent ounce production.
Synchronistically, I finally connected with the CEO Arturo Prestamo a couple weeks back and we are going to record a Santacruz Silver update this Friday together. So stay tuned… 🙂
SCZ insiders have bought 3,200,000 shares in the last 6 months and only sold 490,000. I like those numbers. I also own Santacruz! DT
That’s good news I didn’t even look up, thanks for that.
Decided to add another layer to Santacruz Silver again today as well. Brutal selloff, but I’m happy to accumulate shares here into the carnage.
The USD index is at a 1 year high. Perhaps the loonie would hold up better without that bankster/WEF puppet and crew trying to normalize Depravity, Entitlement, and Insanity.
In real term the buck is just 9% above its all-time low but it could go higher (gold could go lower)…
https://stockcharts.com/h-sc/ui?s=%24USD%3A%24GOLD&p=W&yr=3&mn=11&dy=5&id=p06479148218&a=1829822048
Long term the dollar is far from turning bullish relative to gold.
https://stockcharts.com/h-sc/ui?s=%24USD%3A%24GOLD&p=Q&yr=45&mn=11&dy=0&id=t1438777446c&a=1574406000&r=1731530553803&cmd=print
Perhaps Christopher Aaron maybe right Dow:gold ratio breaking out in favor of DOW? Trump is gathering is a team of Avengers, maybe glorious 4 years ahead?
The action lately makes sense from a psychological standpoint but consider what it would mean for stocks if Trump’s team does what it says it will do. Stocks have become so dangerously and seemingly permanently overvalued in large part because of reckless and self-serving central planners so putting an end or even a partial end to 15 years of profligacy will probably send stocks into a long overdue bear market. And that would be a good thing in my book.
Can we have a bear market along with a super bull in commodities???
Wolfster, stocks and commodities topped around the same time in 2000/01 and fell together for awhile but commodities (CRB) bottomed almost a year sooner than stocks. From there the S&P500 fell another 30%+ while the CRB rose almost 25%.
https://stockcharts.com/h-sc/ui?s=%24CRB&p=W&st=1998-07-29&en=2005-04-29&id=p03704317823&a=1830991653
However, the monetary metals, especially gold, are really not commodities from an investor’s perspective. Again, looking at that 20000 top in stocks notice that the gold miners (HUI) bottomed almost 2 years ahead of the S&P500 and quadrupled while the S&P fell another 80%.
https://stockcharts.com/h-sc/ui?s=%24HUI&p=W&st=1998-07-29&en=2005-04-29&id=p37007507208&a=1830995681
For a variety of reasons I expect history to rhyme more than repeat and do not think that gold and silver stocks will participate in any significant way with stocks when they roll over and the juniors might not care at all. But of course it does depend on the timing. If stocks have a good time until after Christmas our miners could be overbought again when stocks turn which of course would make them at least short term vulnerable.
All valid points, Matthew. But overvaluation can stubbornly remain so and get even more so. It’s hard to imagine a catalyst other than some kind of geopolitical event.
Looks like the Canadian dollar is heading below 70.
https://stockcharts.com/h-sc/ui?s=%24XDC&p=M&yr=17&mn=0&dy=0&id=t0254943559c&a=1739579481&r=1731532965280&cmd=print
I-80 Gold got crushed today.
https://www.tradingview.com/x/1ZExLBjH/
Silver ‘Tell’ May Bottom Soon
https://tinyurl.com/bddmb9wj
Pre-Market MaxSat(7)s
Not sure how much funding change the White house can do on appropriated funding as it is a Congressional issue (House). We will see as “there are rules” which have to be followed. I guess he can take a suit to the Supreme Court and see if that “exception” is allowed.