Nick Hodge: Commodities Supercycle In Countertrend Move Due To Economic Contraction

Nick Hodge joins Shad Marquitz of The KE Report to discuss the current macroeconomic environment, central banks, bonds, currencies, commodities, and precious metals. First reviewing the nature of the current bear market in general US equities, and global equity markets, and if we’ll still see a larger capitulation event.

Nick makes the point that with so much market noise it is important to remember that the Economic Cycle is larger than the Fed and any short-term developments, and we are currently in an economic contraction.

Next Nick and Shad shift over to the commodities, where the recent pullback in many raw materials is simply a counter-trend corrective move within the larger commodities supercycle that kicked off in 2020.  They review the compelling themes of electrification and decarbonization and how those have allowed commodities like lithium, uranium, and copper to have hit new highs this year with plenty more upside in the years to come. 

Pivoting over, Nick shares his thoughts on the precious metals, and he offers his approach to investing in gold, silver, and the PM mining stocks.  He outlines how he evaluates the senior and junior mining stocks, and what kinds of things he likes to see as well as red flag warnings within the management teams, share structures, and jurisdiction risk. Listen to the full podcast below!