LOTM Investment Themes for 2021! -

I: Precious Metals are in a Bull Market

We have expanded that to all miners as contributors to Infrastructure Buildout, Alternative Energy Expansion and Electrification of Transportation.
This Metal Bull is volatile and long winded – this will last for multiple years but expect sharp, sudden and out-of-nowhere corrections. Recoveries will be equally quick and sharp.

II: 2020 to 2030 will be the Decade of Commodities.

Fed Policy clearly states low interest rates for multiple years and a desire to let inflation rise above Fed target goals. Why – Pay back the Federal Debt with Cheaper Dollars. It was done after the Civil War and after WW2. First rule of Investing: Follow the Fed.
Oil & Gas Prices will rise in 2021 and 2022 as Jet travel and economies normalize with introduction of Covid Vaccines
Copper, Nickel, Cobalt, Aluminum and Silver demand will increase as the transport industry electrifies – Batteries, Electric motors, Wind Solar & Electronics devices. All require metal and electrical conductivity. As environmental regulations increase with the new administration and inhibit supply, metal prices will rise.

III: Small Cap Stocks out-perform Large Cap stocks in Times of Inflation

Growth can out-run inflation and small companies typically grow faster than big companies. That assumption has shifted somewhat from the traditional view as a few big companies have come to dominate in the digital world. In general – still true.

IV: Countries, who are commodity exporters, will has the strongest stock markets and economies

V: Crypto has arrived with Mainstream Acceptance and Bitcoin will dominate.

Below are two articles we would like to share. One from Kitco and the other from Goldman Sachs.

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Have a Great Day!

LOTM Investment Themes for 2021!