Over-expanded stock valuations, perfect foundations for miners and balance sheets and the volatility that election results will bring to stocks. Now these three developments are focused on the election results. Tavi Costa, portfolio manager at Crestcat Capital, discussed the issue.
Gold Miners Will Perform Well
“In the short term, I can say that the stock markets are very attractive to me in the next 12 months, so there is a possibility of a divergence [between mining stocks and broad stock indices]. Going forward, gold-focused miners will outperform the stock markets, ”he says.
Technology Focused Stocks Have a Bubble
Looking at gains in prices, Costa said tech equity valuations are in the bubble zone.
“We are definitely in a bubble. The bubbles can last for a while until there is a trigger. The trigger must be liquidity, which can be triggered by rising inflationary forces. There may be a deflationary decline, as we saw in March. “The epidemic that does not allow companies to enter the business world again can be effective in this,” he says.