E.B. Tucker: Mining Equities Are Under Appreciated, Inflation Is Coming
E.B. recently attended a conference promoting the housing market, there seems to be a lot of interest and several big name speakers were there. He thinks this is an indication of where we are, as the housing market is cyclical, the time to buy real estate was several years ago. Returns in real estate are likely to be remain low. If your interested you could look at regions with growth, like Brazil where they have better demographics.
E.B. has spent the last two decades researching equities, it is currently tough as many feel the markets are overpriced. He says you still want to have some market exposure with good companies and some cash on the sidelines. Trump may use a government shutdown as leverage along with his superior negotiation skills to implement policy changes.
Deflationary forces were strong from 2011 until mid 2016, this was the winning trade although few realized it at the time. That trade now appears to be over. The Euro may be a good trade going forward, with the US Dollar now weakening.
People often overlook the mining sector due to historical issues. There was a very positive change in the mining sector trends last year. There are good opportunities to buy with almost no one else looking into the sector.
Mr. Tucker discusses streaming companies, how their business model works, why they are a good alternative to the more volatile mining equities. He thinks there is still good money to be made in small streaming companies that can work with small producers. He discusses Metalla Royalty & Streaming (CSE:MVT) and the procedures used to confirm streaming deals through assessments of mining companies.
Talking Points From This Week’s Episode
• Housing market not the place to be.
• Euro may be a good opportunity with the US Dollar weakening.
• Deflation has ended and an inflationary period seems to be starting.
• Mining sector is overlooked and undervalued, recent softness may be a good buy point.
• There are excellent opportunities with small scale streaming companies.
E.B. Tucker is is on the Board of Directors at Metalla Royalty & Streaming Ltd. and is also the senior analyst for The Casey Report. E.B.’s been profiting from crisis for years. In early 2009, he realized that the US housing bust would create a generation of renters. He raised money and bought a large portfolio of single-family rental houses at rock-bottom prices… as low as 10 cents on the dollar.
E.B. was also a founding partner and managing director of KSIR Capital Management, an investment firm focused on gold and silver equities. He knows the gold and silver business inside and out, having visited mines in many countries.
He holds a B.Sc. in Business Administration with a focus in Finance from the College of Charleston in Charleston, South Carolina.