Jesse Felder: Everybody Needs Some Exposure to Gold
Jesse discusses his early career and what got him interested in finance. After college, he realized that he had a passion for finance and ended up working for Bear Stearns. He worked with private clients and then became involved in a hedge fund.
He has studied many financial investors and is continually refining his approaches for investing. He examines the macro picture to find the general narratives that investors have toward asset classes. His most successful calls have been through individual stock picking. He focuses on those that are out of favor and misunderstood by the market. Look for those investments that are so compelling that one can’t avoid putting capital into them.
Precious metals have become particularly hated. Looking at what is hated is a good way to find opportunities. Gold still brings a lot of skepticism even though the fundamentals are clearly suggesting the need to own it.
Jesse discusses some of his mistakes including things like panic selling and getting out of a position too early. That was a harsh lesson to learn. You need to do your research and have your own reasoning when investing. Be sure that changes to government regulation don’t adversely affect your investments as some of these lessons can be quite painful.
Investors forget that markets move in cycles. People project that the status quo will continue out into the future instead of expecting a possible reversal. Take the temperature of the market regularly and adjust your portfolio accordingly.
Talking Points From This Week’s Episode
• It’s important for everyone to have gold exposure in their portfolio.
• Owning gold over the next several years could be very rewarding.
• The key to successful investing is having everyone agree with you later.
• Investors need to remember that markets move in cycles.
Jesse Felder is Founder, Editor, and Publisher of “The Felder Report.” Jesse has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Since founding The Felder Report in 2005, his writing has been featured in many major financial publications like The Wall Street Journal, Barron’s, The Huffington Post, MarketWatch, Yahoo!Finance, Business Insider, Investing.com, Seeking Alpha and more. Jesse also hosts and produces the Superinvestors and the Art of Worldly Wisdom podcast. Today he lives in Bend, Oregon with his wife and two kids.