Cory doesn’t see much concern regarding the markets from generalist investors. Valuation metrics have been off the chart for some time, and it makes sense that we will see a correction at some point. Most seem to feel the markets will push higher.
Central banks and the Fed are major macro factors since they keep adding money to the system. Foreign central banks are talking about reducing stimulus. Bad news is now bullish for markets because it means further intervention, while good news can be negative. He outlines some of the reasons why crypto has been more volatile than usual. These are, first and foremost, speculative assets, and cryptos remain challenging to value. He discusses some of the questions they have for Jeff Christian of the CME Group. He is co-hosting a Q&A along with Happy Hawaiian. Silver has the advantage of moving based on two narratives, both the precious metals aspects and its industrial use. Cory discusses gold’s performance over the last couple of years and how it has had a nice stair-stepping pattern. Gold’s performance can boost silver, and both are likely to do well. An important question is will inflation be transitory or long-term. Inflation will play into sentiment as, naturally, investors may seek more solid alternatives to fiat. A slow and gradual rise in metals would be preferable to a short-lived blow off-market. He’s paying close attention to copper because it is outperforming. Some copper stocks have a lot of potential, particularly if funding becomes available for developing new mines. He wants to see an experienced management team with past successes for miners. Successful management is more likely to attract veteran investors. Lastly, he discusses what he wants to see from junior and mid-tier resource companies. He says, “Mergers and acquistions are almost always good for the sector.”