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Stagflation appears imminent says analyst who predicted current market crash - John Feneck

Kitco News

(Kitco News) - As crypto, stock, and bond markets face downturns, there are fewer assets available to protect against stagflation, said John Feneck, Founder of Feneck Consulting. Feneck spoke with David Lin, Anchor and Producer at Kitco News, at the PDAC 2022 Convention in Toronto.

"I have zero money invested in the broad market," he confirmed. "I am short about 11 or 12 percent in the broad market right now."

When it comes to gold and silver, Feneck was satisfied with gold's performance, but said he finds silver "worrisome."

"The GLD chart, just using that as a proxy, has made a series of higher lows for months," said Kaiser. "So gold, even here at the $1,820 level, isn't that worrisome to me. It is worrisome that silver is just oscillating."

He mentioned that silver's performance is erratic, since it sometimes behaves like an industrial metal, and sometimes acts like a precious metal. This in turn has implications for silver miners. For example, First Majestic Silver, a prominent silver miner, said that its all-in sustaining costs are up to $18 per ounce of silver.

"The most perplexing thing in this space right now is, why hasn't silver performed?" said Feneck. "You just have to follow the price, and the price is going down. So, we're not loading up on silver miners until we see that $23 to $23.50 level breached to the upside on some good volume, and we head back towards $25."


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When asked which assets would have the most downside going into 2023, Feneck said, "Definitely tech stocks. Anything with beta to it. That would be the QQQ, the NASDAQ, the IWM, the Russell. The momentum game is over… People keep trying to bottom fish things, and they keep catching a falling knife."

To find out Feneck's thoughts on crude oil, palladium, and miners, watch the above video.

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