Mike Larson: The Fundamentals are in Place for a Powerful Gold Bull Market
Mike discusses his early career in journalism working for Bloomberg and then Bankrate.com, and more recently, he joined the Weiss Ratings team. His focus has been on interest rates, bonds, and equities, which have trained him to study the precious metals markets carefully. Martin Weiss has taught him a lot about the industry and instilled in him the benefits of a conservative approach to investing.
Over the next couple of years, a more powerful bull market in gold will form due to the zero-interest and negative-interest rate environments. While stocks have reached new highs, there are growing concerns within the credit markets. Precious metals are undervalued and relatively cheap, while most other sectors are stretched and overvalued. Many countries are acquiring gold reserves and are in the process of de-dollarization. Money printing has had a significant effect on asset prices but many central banks are finding it increasingly difficult to push markets higher.
We are still in the early stages of this move, and most investors do not have exposure to this market. Since it’s a small sector, there is a lot of potential for money to rotate into it. Markets are beginning to feel similar to 2007 and everything suggests that we are in the beginnings of this cycle for precious metals.
His biggest mistake was being too negative for too long coming out of the last financial crisis and failing to recognize that asset prices would recover so well.
Mining share valuations are quite low, and they have quite a ways to catch up with the rest of the market. If you read “The History of Interest Rates,” it very much argues for a bullish move in gold. He also recommends that investors read DiMartino Booth’s book “Fed Up.”
Time Stamp References:
0:40 – His early career in journalism.
3:00 – Why gold will go much higher.
6:40 – Yield chasing and excessive optimism.
8:30 – Mistakes with investing.
10:20 – Still early in this gold market.
11:30 – Favorite books.
Talking Points From This Weeks Episode
•His early career and what led him to the financial sector.
•The effects of NIRP and ZIRP on markets.
•Markets feel similar to the end of 2007.
•Mining shares remain undervalued.
Mike Larson is a Senior Analyst for Weiss Ratings. A graduate of Boston University, Mike Larson formerly worked at Bankrate.com and Bloomberg News and is regularly featured on CNBC, CNN, Fox Business News, and Bloomberg Television as well as many national radio programs. Due to the astonishing accuracy of his forecasts and warnings, Mike Larson is often quoted by the Washington Post, Chicago Tribune, Associated Press, Reuters, CNN Money, and many others.