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Home / Business / A Warren Buffett disciple said that this is the place to put money into stocks before traders start “spin, if not stamped”

A Warren Buffett disciple said that this is the place to put money into stocks before traders start “spin, if not stamped”



Earlier this year, Berkshire Hathaway named its heavyweight name Barrick Gold GOLD,
+ 0.31%
Faced with Warren Buffett’s long aversion to gold, this investment has taken off. A strategist said at the time that the news “shook the gold market.”

Now, Crescat Capital Chief Investment Officer Kevin Smith (Kevin Smith) said that someone subsequently increased their exposure to gold GC00,
+ 0.24%
When the bull market turns, profits from some of these high-yield people will be richly rewarded. Smith (Smith) talked about learning the ropes from Berkshire Hathaway shareholder BRK.A earlier this year.
+ 1.06%
A letter from his father a long time ago used this chart to show how investors are at a critical moment.

Basically, the trading price of stocks is at a record high, and on the other hand, commodities have never been undervalued. “In terms of the relative performance of these two asset classes, a macro hub has been established,” Smith wrote in a note to clients. “There are conditions comparable to the Nifty Fifty bubble in 1972 and the Dotcom bubble in 2000.”

He explained that investors will soon seek to use their funds for the highest growth and lowest valuation opportunities, which will lead to large strides forward for those high-value stocks that have brought the bull market to record levels.

Smith writes: “Analytical investors will soon (even without stamping), switch from expensive deflationary growth stocks and fixed income securities to cheap hard assets, thus reversing the 30-year decline in the speed of money. Trends.” Some popular methods of performing Smith’s forecast rotations are to go long Newmont Corp. NEM,
+ 1.17%
And Barrick Gold, or get involved in ETFs such as GDX GDX,
+ 0.31%
And GDXJ GDXJ,
+ 0.13%.
He said, then, the greater chance is to pick a winner from the prospecting side.

Smith wrote: “Frankly speaking, buying gold or silver today is no longer a contrarian investment.” “There are enough people who agree that due to fiscal and monetary prudence and unsustainable debt imbalances in the financial system, all government-supported Fiat currencies are destined to depreciate due to inflation.”

The futures of the Dow Jones Industrial Average YM00 have not yet shown such signs of rotation.
+ 0.22%,
Nasdaq NQ00,
+ 0.41%
And S&P ES00,
-0.05%
Before Monday’s meeting, everyone went higher.


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