Michael Durose: Gold is a Negatively Correlated Asset Class
People are looking to diversify their portfolios and this has renewed interest in gold and gold equities.
Thus far, the money driving the rising gold equity value has come from generalist investors rather than from specialized resource funds. Since generalist investors look for the largest market cap companies, we have seen first movement in the seniors, followed by mid tier, juniors and finally emerging juniors.
Zero and negative interest rates have caused investor behavior to become erratic as people seek returns. Money on the move has created a very volatile investment climate. We are setting up for another major bull market in precious metals.
Mike shares some specific companies that are ripe for investment. Quality asset companies have the ability to generate good cash flow once up and running and have a good capital structure.
Talking Points from this week’s interview:
• Gold is a negatively correlated asset class
• Renewed interest in the gold equities.
• How have zero interest rates effected gold equities
• General investors are driving asset price increases.
Toronto-based Durose Asset Management Inc. was launched in 2015 to provide an independent asset management and advisory service for clients seeking a professionally tailored, common-sense approach to the management of their financial resources. Founder Michael Durose is a registered Portfolio Manager, Fund Manager and Exempt Market Dealer with the Ontario Securities Commission and has more than 20 years’ experience working in capital markets as a highly ranked financial analyst.