Doomberg and I had a long conversation on March 30, about his outlook on the economy, his stance on inflation vs deflation, his price prediction for uranium and oil, and his exposure to the uranium thesis.
Doomberg’s main concerns going into 2022 are food and energy. They recently wrote a very interesting article called “Farmers on the Brink”, and it is one of their best pieces to date.
When it comes down to energy, Doomberg are much more bullish on uranium, than they are on anything else.
He told me that if the uranium price doubles from here on, utilities will have to pay up a little bit more, but the consumers won’t feel much of it, at all. However, if the oil price doubles from here on, the economy collapses, he told me.
That being said, Doomberg is not invested in any uranium stocks, as he doesn’t like managing the risk of management, project economics, deposit positioning, and the many other risks involved with uranium stocks. The only way Doomberg is investing in uranium is through the Sprott Physical Uranium Trust (TSE: U.UN).
“There are too many catalysts for this thesis not to work”, Doomberg told me. Some of the most-prominent catalysts for uranium right now are the potential sanctions. Doomberg thinks that any sanctions on uranium specifically might be deliberate, as the US understands that it’s vulnerable and should stimulate domestic production of uranium, which it could only do if the price of uranium is high enough for its producers to earn a profit, and a return to shareholders by mining uranium.
Is this time different, though? Doomberg doesn’t think so. He told me that commodities move in cycles, and this time wouldn’t be different. However, the presence of Sprott in this market, is a unique segment of the market, which he thinks is not taking SPUT seriously enough.
When it comes down to inflation, Doomberg doesn’t think it’s possible for us to go into deflation in the short to medium term, mainly because of where the housing, the food, and the energy markets are.
None of what you hear nor read on this website is intended to be financial advice. This conversation is general and impersonal in nature. The people in this conversation may have a higher risk appetite than you. Do your own research. We may own shares in the companies mentioned in this video, which makes us biased. Don’t listen to us. Don’t let this impact your thinking. You’re better than listening to talking heads on a random website. Before continuing with this video, you must read and understand the full disclosure here: https://resourcetalks.com/disclosure/
TIMESTAMPS:
00:00 Small talks
10:00 Who really is Doomberg?
15:00 What really matters in macro-economics?
18:00 Inflation or Deflation?
22:00 Why we can’t have deflation
28:45 Can we have a housing market crash?
37:40 What would a 26-year-old Doomberg invest in right now?
40:00 Which energy is Doomberg most bullish?
46:30 Uranium price outlook
52:15 The most-prominent catalyst for uranium
55:40 Is this uranium cycle different?
01:10:00 Who’s Doomberg’s hero, his favorite book, and his favorite sources
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