INVEST LIKE CASEY... All U.S. Miners To Benefit From Trump PresidencyBy Kitco News
Friday December 23, 2016 09:09
Editor's Note: Kitco News has officially launched its 2017 Outlook where we ask if this is the start of a new Raging Bull market. Be sure to catch all our coverage here, which includes gold forecasts, special technical reports and of course, our popular Invest Like The Experts Series. We will also be launching a new feature so be sure to stay tuned!
(Kitco News) – We kick off week 2 of the Expert Series with famed resource investor and author Doug Casey.
We asked him where he’ll be placing his bets in 2017 and why he thinks President-elect Donald Trump will be really good news for U.S. miners.
He also shares why he’s shorting stocks and selling all bonds.
This year, Kitco News asked experts where they would invest $500,000 in 2017. We also asked them to share some New Year’s resolutions they have in terms of investment strategies and what some of their top stock picks will be for the coming year.
This feature comes out every Friday for the next few weeks, so be sure to stay tuned for more insights from veterans in the industry.
We hope you enjoy the series!
Expert: Doug Casey
Claim To Fame: Author and international speculator
How would you invest $500k in 2017?
Without giving a precise breakdown, Casey said he’s definitely eying commodities in 2017 because it is the only asset class that is cheap right now.
“The big opportunity—other than being long most commodities, which are down about 50% over the last 5 years—is to be short bonds, which are in a super bubble, now deflating. Stocks are way overpriced. With real estate, at least make sure that if you have a mortgage, it has a fixed interest rate,” he said.
“Your speculative capital can be in commodities or commodity-related stocks.”
What will affect gold most in 2017?
According to the not-so optimistic Casey, increasing levels of chaos are likely going to push investors towards gold.
“I think we’re going to see higher levels of chaos in a number of areas – financially, economically, probably militarily, socially and definitely politically,” he said.
However, it is really one factor that will drive capital into the yellow metal.
“At this point, inflation on a retail level is coming back. All the scores of trillions of currency units that have been created over the last 7-8 years are going to start coming out of the financial system, where they’ve created bubbles, and down to the retail level,” he said.
“That’s going to drive people into gold too. I’m very bullish on gold, and also silver.”
What is Your Top Mining Pick for 2017?
Vancouver-based Northern Dynasty Minerals, with operations in Alaska, is on the top of Casey’s list.
“Its problem has been political. But with Donald Trump in office, the roadblocks are going to vanish,” he said. “This is a stock that can go back to its previous highs.”
Doug Casey disclosed that he own “quite a bit” of shares of Northern Dynasty Minerals.
More Thoughts on Mining in 2017
Donald Trump will help miners with operations on American soil in 2017, says Casey.
“Mining stocks that have properties in the U.S. are going to benefit from the Trump presidency,” he said.
“I think he’s quite serious about trying to de-regulate and make it easier to produce new wealth. So, everything else being equal, I’m friendly towards American resource stocks in particular.”
What Is Your New Year’s Investment Resolution?
“My resolution is to keep my eye on the big picture. That means the most important thing over the next couple of years is just maintaining capital and keeping what I have,” he said.
Casey alluded to a quote by Richard Russell that he often refers to, “In a depression, everybody loses. The winner is just the person who loses the least."
If you could describe 2016 in one work, what would it be?
Being the contrarian that he is, Casey instead chose to use seven words to describe this past year.
“The start of a whole new era,” he said.
Seven also happens to be the number of books Casey intends to release as part of his High Ground series. Part 1 entitled Speculator was released in.
By July 2017, Casey expects to release the second book called Drug Lord.