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This week, I was joined by Andy Hoese from the Finding Value Finance YouTube channel to talk about what he sees in the broad markets going forward, as well as what he thinks offers the best opportunity for the long term.
Spoiler alert: he likes commodities.
Specifically, Andy told me that he is very bullish on uranium. Andy thinks that uranium offers the best risk-reward ratio currently visible to him.
In addition, Andy and I talked about shipping. Andy likes the risk-reward on shipping, too. He told me that shipping has the opportunity to outperform gold by a factor of 7. Provided that, earlier, he told me that he thinks gold could double from here on, that means Andy expects the Baltic Dry Shipping index to make a very large move (14X).
For other metals, Andy turns his head towards platinum. Often times people say that silver is the cheapest metal out there because of how “mAniPuLatEd” it is, but in reality, the ratios show a different story, according to Finding Value Fiance. He says that platinum is historically undervalued relative to all the other precious metals and he has put a large portion of his net worth in physical platinum.
Dr. Quinton Hennigh
Besides Andy, Dr. Quinton Hennigh, Phd in economic geology, made an appereance on this week’s show as well. He helped me understand the concept of geochronology and how important that is.
According to Wikipedia, geochronology is the science of determining the age of rocks, fossils, and sediments using signatures inherent in the rocks themselves.
When looking into an early-stage company (think exploration companies), it’s important to understand the time period from which the rocks that they’re sitting on come from. This might help the company study the proceses that occured and it might help them understand the probability for presence of economical deposits.
Simply said, if you know where the rocks come from, how they got there, what happened before that and what happened after that, the chances for success increase dramatically.
Dr. Hennigh tells me that this is crucial question to ask early stage exploration companies, especially when they’re Athabasca Basin-based uranium explorers.
Please read this, and the full disclaimer over here, it is really important and for your own good:
This video should not be considered investment advice of any sort. The contents of this video are general and impersonal in nature No trading recommendations are being made in this article. Be diligent and do your own research before risking your capital. The investment decisions of the author are based on their own investor profile. This includes, but is not limited to, their risk profile, their cash balance, and their debts. The author likely has a higher risk appetite than yourself. That’s why you may never assume anything on this website to be personally tailored to your situation. Resource Talks, nor the Author of this article are a registered advisory service and we do not give investment advice. Our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. Always consider that companies discussed in this video and the people discussing them have a financial relationship.
00:00 Performance overview
02:00 Have commodities decoupled from the broad market?
14:30 Finding Value Finance Andy interview on broad markets, shipping, platinum, natural gas, uranium, and mroe
01:04:30 Geochronology; what is it, and why does it matter for uranium companies?
01:15:00 Closing thoughts
Was there something wrong with what the guest said? Did I fail to ask an important question? Please tell me about it. Criticism and skepticism are highly welcome.