Mining and energy stocks offer deep value
The guest argued that mining and energy stocks represent the cheapest assets globally due to extreme institutional neglect, ESG headwinds, and a cyclical underinvestment in the raw materials of civilization.
The argument
The guest pointed out that energy and mining have shrunk to tiny fractions of the S&P 500 (4% and 2% respectively) as capital has chased technology. Despite the operational difficulties and political risks of mining, these companies are highly profitable at current commodity prices.
The thesis, stress-tested
✓ What validates it
- ✓All-in sustaining costs (AISC) remaining well below spot gold prices, sustaining high margins
- ✓An increase in institutional capital flows back into natural resource sectors
▸ Risks discussed
- ▸A drop in gold prices back toward $3,000 or lower would drag mining equities down
- ▸High political risk, local shakedowns, and windfall taxes on mining operations
Hear it yourself
"It's been 39 or 40 times. He said everything's fine. I solved it. I think he probably has this time, because he realized that that, you can't conquer Iran. And if you try to do it, you're going to have something much worse on your hands than The US took on with Vietnam or Afghanistan. So he's widely decided decided to back away and leave it alone. He should never have gotten involved to start it. It was a a dispute between the Israelis and the Persians, the ancient civilization of the Persians, the Iranians. And, the Israelis, talked him into or pressured him into well, it wasn't hard."
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE