Erik Wetterling – Pricing Dislocations Due To Market Volatility Create Opportunities For Portfolio Value Shuffling
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to discuss the opportunities he is seeing for portfolio rebalancing or “value shuffling,” due to the extreme market volatility and pricing dislocations in many resource equities. This volatility is caused from across-the-board sympathetic selling in most market sectors on back of reactions to the Trump tariff policies.
--> Key themes covered in this interview:
- Precious Metals prices are still at very high levels, and yet many gold and silver equities have had disproportionate selloffs in sympathy with US general equity markets.
- Comparisons to this recent rapid correction in the gold stocks, versus other strong corrections; like what we saw during the pandemic crash or bear-market market lows of late 2015 into early 2016. Erik notes the much different backdrop in the fundamental value of the producers and developers based on current gold price in contrast to those other market crashes.
- What are the actual effects of tariffs on US domestic resource companies, versus companies operating internationally; as it relates to cost inputs like oil, labor, chemicals, steel, and capex to build new mines.
- Why volatility is the bread and better of value investors. Erik mentions that volatility creates the opportunities for value shuffling in one’s portfolio and is the “poor man’s dry powder.”
- What are the type of precious metals stocks that Erik is most interested in rotating into, considering the current backdrop of blanket selling across the whole sector.
