Andrew Hecht rejoins the Marketplace Roundtable podcast to discuss his views on the commodity sector and picks for 2020 as featured in the Hecht Commodity Report research service.
Hecht is bullish on all commodities. "We're seeing a little bit of a pullback in some of the leading commodities, which I think is a buying opportunity," he says. Asked to name favorites, he identifies precious metals and oil, which "is getting to the point where it's back in the buy zone." Oil equities, too, "offer tremendous value in a market that's almost devoid of value."
2020 should be a volatile year: "A nightmare for investors, but a paradise for nimble traders with their fingers on the pulse of markets." To pick spots, Hecht looks at open interest and commitment of trader reports, and technicals such as open interest and volume, among others.
The coronavirus is certainly a concern for the short term, especially considering that China is the world's largest purchaser of commodities and primary driver of demand for raw materials. Eventually this could be a buying opportunity for commodity investors as secular Chinese demand is ultimately not going anywhere.
Topics Covered:
2:30 - Investing strategy

3:45 - Favorite commodities

5:00 - How do you time long vs short?

6:00 - Is the Coronavirus having any impact on your views?

9:00 - What's the effect on equities?

10:45 - How much diversity is there in commodities?

14:00 - What's your background story... how did you get into investing?

18:45 - Macro view

22:00 - Views on Gold

24:00 - Are any currencies immune to devaluation?

25:00 - Buying opportunities (FCX) (OIH)

29:15 - Positioning portfolio in light of the upcoming election


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