Jaime Carrasco: China Could Tip-Off a Global Inflationary Tsunami
Tom welcomes Jaime Carrasco of Canaccord Genuity back to the show.
Jaime discusses managing pensions for Microsoft Canada and learning a lot about individuals investing strategies. Attitudes change during major stock moves and people wish they hadn’t paid off debt and instead invested.
Gold is not going to stay down much longer due to inflationary pressures. All markets have been manipulated though money from the financial sector. Metals are not able to signal the inflationary alarm.
The explorers are being hit hard right now but that’s where the value is along with producers. This is an excellent entry point. At some point we will see a massive rise in precious metals just to keep up with the other commodities.
He explains how they reduced their crypto positions during 2020. They reallocated into producers and he is awaiting the next move in crypto. The true value right now is in the gold and silver producers.
The financial titantic is sinking and we’ve see Fed members quit so they can get out of the markets. Something big is coming and it’s not just up to the United States. China is the one that is going to be pulling the strings.
The manipulation of markets has pushed up stock markets while keeping other markets down. The longer the physical imbalance the bigger the eventual adjustment.
China has obtained a lot of gold and much of it is with Chinese citizens. They have stated they will be creating a new Yuan which will be backed by something tangible. Russia has also bought a lot of gold because they also understand the play.
The demand for copper from China continues to be huge and therefore prices will remain high.
We’re using ‘new math’ to calculate the CPI if you calculate it like in the 80s were around 15%. There are only so many lifeboats for investors to get into and after that it’s over.
Russia is the only country with no internal debt and this is a result of exporting energy. They are just a massive producer of food and energy. They are sort of the bouncer for China. The activity in Ukraine is largely noise and Russia has little interest in that region. The big play is Nordstream 2. Putin is the chessmaster of geopolitics.
Once the ship sinks we will rebuild the system without the old players and that is where blockchain will help us rebuild. The internet is going to allow us to decentralize away from these centralized systems.
Time Stamp References:
0:00 – Introduction
1:10 – Imbalances & Leverage
7:30 – Gold & Silver
11:03 – Crypto Weightings
13:13 – China & Real Estate
14:40 – Inflation Politics
16:10 – US Dollar Outlook
18:56 – This Time It’s Different
20:57 – China PPI & Defaults
23:57 – Russia & Gold Purchases
26:36 – Central Banks & Gold
30:36 – Blockchains Role
34:23 – Wrap Up
Talking Points From This Episode
- People’s attitudes in frenzied markets.
- Balancing your crypto portfolio into juniors.
- Outlook for the US Dollar and the politics of inflation.
- Russia, China, and Central Bank gold holdings.
Website: Canaccord Genuity https://www.canaccordgenuity.com/
Jaime Carrasco is portfolio manager at Canaccord Genuity Inc. in Toronto. From 2014-2018 he worked as Director of Wealth Management and Associate Portfolio Manager for ScotiaMcLeod. Before this, he worked for Macquarie Group, CIBC Wood Gundy, BMO Nesbitt Burns, Gordon Capital, and Merrill Lynch.
Jaime is a leading Canadian investment professional with 25 years of experience providing wealth management and investment counsel to affluent families, businesses, and institutions. He has garnered a reputation for questioning and challenging the status quo and exploring the most innovative investment strategies.
Jaime, whose mother tongue is Spanish, also speaks Italian and French. He completed a BA in political science and economics at the University of Toronto in 1988. While a student, he worked for CS Yacht, a company that built luxury sailboats, thus spending his summers as a skipper for the Canadian establishment members. Jaime credits this experience and having survived sailing through Hurricane Bob in 1991. This experience taught him lessons that have become a metaphor for his financial investment strategies.
“Like one’s financial wealth, sailing is not about controlling the wind, but rather about adjusting the sails.”