Andrew Hoese: When the FOMO Comes Rushing Into Commodities
Tom welcomes back Andrew Hoese from Finding Value Finance to the show. Andy runs an educational channel where he digs deep into economic data and conducts chart analysis.
Andrew discusses the potential for inflation in the near future and its impact on various markets. He believes that demographic pressures and fractional reserve lending will lead to inflation and potentially a debt crisis if interest rates rise too high. He suggests that Jerome Powell may raise interest rates further to slow inflation, but this could make it unaffordable for millennials to buy homes. Hoese also discusses the possibility of a short-term slowdown in the real estate market due to deficits and the stimulus sent in 2020. Regardless further inflation may be coming.
Andrew further analyzes the potential effects of transitioning from a low-interest rate to a high-interest rate environment. He suggests that this transition could impact businesses and individuals, potentially leading to a slowdown in certain sectors and causing companies to contract or go out of business.
Hoese believes that gold may perform well under either an inflationary or slowdown economic environment. A rotation of investments may occur, with people turning to commodities and precious metals as a hedge against the general market.
Overall, Andy emphasizes the importance of taking a long-term approach to investing and staying patient. He recommends considering sectors that have a supply deficit, such as uranium, oil, natural gas, metals like platinum and silver, and even homebuilders and banks. He also advises investors to do their research and watch their risk-reward levels.
Hoese’s analysis suggests that a shift in investment mindset may be necessary, with a focus on commodities and precious metals. He emphasizes the importance of taking a long-term approach to investing and being proactive in identifying investment opportunities.
Time Stamp References:
0:00 – Introduction
1:00 – Market Drivers Ahead
7:36 – Inflation & Demographics
15:56 – Purging The System
18:51 – Bond Demand & Metals
25:30 – Dollar Prospects
27:50 – Capital-In Commodities
32:24 – Timelines & Expectations
39:10 – PPI/CPI & Commodities
43:20 – Home Construction
45:27 – Uranium Cycle & Chart
48:10 – Opportunities & Plays
52:02 – Gold Price & Miners
55:49 – Oil & Gas Producers
1:00:48 – OPEC & SPR Releases
1:02:54 – Optimism & Conviction
Talking Points From This Episode
- Andy believes that inflation is on the way and perhaps higher rates.
- Investors should take a long-term view and watch for opportunities in commodities, equities, and gold.
- Andrew discusses why investors must have conviction for the coming commodity bull market.
Andy Hoese is a Colorado-based investor and entrepreneur who is passionate about teaching people about the financial markets. He was born in Minnesota and graduated with a degree in manufacturing engineering from California Polytechnic State University in San Luis Obispo, CA.
Andy grew up with an affinity for mountain biking, dirt bikes, and competitive sports such as baseball and hockey. He was always good at math and science, which made his engineering degree the perfect fit. After working in aerospace engineering at his first job, he developed an obsession with investing and financial markets and would spend hours on YouTube researching and learning.
Andy started his own YouTube channel, Finding Value Finance, in August 2020. He is an avid car enthusiast who owns several rotary cars, including an RX-7 FD and an RX-8. He also likes to get out on the track for some racing during the summer and fall, and has been working out regularly since the age of 16.
Andy’s three-pillar approach to investing includes ratios, market conditions, and technical analysis. He looks for alignment between these three factors when evaluating potential investment opportunities.
He is passionate about helping others to progress their own investment journey in a positive way, and hopes to make a lasting impression on everyone who joins his journey.