Tom welcomes Erik Wetterling of the Hedgeless Horseman to the show. Erik shows how real assets have never been more undervalued as they are now at 97-year lows. This fact, coupled with poor sentiment towards mining and gold, is a clear sign that this market is massively undervalued. It’s absurd to be talking about being bearish when it comes to miners or the price of gold. He says, “Investing really shouldn’t be this easy.”
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Erik discusses the need for conviction regarding your positions because finding bottoms is difficult. Since the potential risk to reward ratio on many of his investments is great, his approach is often to buy more if the stock moves down.
His approach to the miners is to have an extensive watch list and then wait for the opportunities to come to him. For example, the March 2020 Corona crash created enormous value and thus opportunity. Please focus on the valuations and invest where it makes sense. If you really like a company, but it’s a bit expensive, just put it on your watchlist and wait for an opportunity.
Most retail investors have a time horizon of a couple of months, and every investor has a plan. If he can make a case for a company on a two-year time horizon, that won’t be a crowded investment. Most people aren’t willing to wait, and if you know when the catalysts are coming, it’s the best way to make outsized returns while minimizing risk…