L2 Capital Podcast #13: Chat with Fred Hickey – Technology and Precious Metals

L2 Capital

In today's episode, Marcelo talked to Fred Hickey, editor of the famous publication The High Tech Strategis (HTS). The HTS is a monthly publication with more than 32 years of existence that brings to its readers an independent view on macroeconomic aspects, investments in the technology and precious metals sector.

Fred explains that he began following and writing about precious metals in the early 2000s, as he believed it was necessary to protect oneself against financial measures taken by central banks.

Fred Hickey brings his insight on technology companies and stresses that he is seeing a new bubble. In particular, he comments on the case of Huawei and the possibility of it being banned from doing business in the US.

In the macroeconomic arena, he discusses the possibility of a global economic downturn and recession, bringing various metrics, indicators and examples to support his views.

Fred talks about how the central bank's action has led to a poor allocation of investments worldwide and the consequences that this can bring. He also commented on the companies that burn cash extravagantly, but somehow are able to exist today.

Fred Hickey explains in details his arguments about the bubble he believes we are in now, the role that passive investment has had in shaping it, the stage of the cycle we are in, cryptocurrencies, the possibility of a crash and the reaction of central banks in the midst of all this.

Fred comments on his point of view regarding controversial electric car maker Tesla and its founder Elon Musk.

When asked about how to invest in the current scenario, Fred Hickey suggests allocations that he considers sensible, given all his views at the moment, going through the issue of currency devaluation, the impact on asset inflation and the cost of living.

When the subject is gold, Fred describes the recent movements in the price of the metal, which he believes is now in a new bull market. He also highlights how the participation of extremely leveraged traders affect the price of gold and he describes in detail what he characterizes as a gold transfer west to east.

In addition to talking about his expectations for gold prices in the future, Fred Hickey commented in detail on mining stocks he follows, such as Agnico Eagle Mines and Kirkland, to name a few, and talked about their operations, characteristics and other investment-related metrics that are relevant.

Fred closed his remarks talking about his views on the risks that people are not taking into account, especially expectations regarding the monetary policy of the Fed.