Loic Le Maho @LoicInv: "another very bearish day for..."

France

another very bearish day for $SILVER , bullish day for the $USDNOK , bearish day for $OIL . It doesn't make sense to me but this is the move we must endure, worse than the previous 2 that happened after the Iran war. The budget deficit is 2 trillion USD, inflation is out of control and somehow $GOLD and $SILVER have seen consecutive weeks of downward pressure. $SILVER is a monetary metal, very useful for both AI and the renewable transition. But the market have their minds hijacked by IPO of companies opening at more than 100 times revenues. Go figure. This is peak insanity and the algos are ruling it. Our portfolio has actually quite low leverage, even though I use etoros CFDs. Exposure detail is : 1) $SILVER for 54% of the book 2) Precious Miners are 53% of the book 3) there is a long $OIL (roughly at pre-war level despite all the disruption and as if everything was solved) and short $RTY (at all time high) for 20% of the book 4) short USDNOK for 150% of the notional of the book So the exposure is completely reasonable and I know it is a bad moment to endure against the algos, just like other occurences in my previous 5 years here. I am 100% sure that this is a winning hand but it is frustrating as I know retail investors can panick sell to the algos and I don't want my copiers to do that. I added last week personally on this strategy and I think this is an opportunity to add more to it. I will basically accumulate here as soon as I can. All the rationale we are given is Warsh being a hawk on interest rates. It's all talk of course and nothing can stop the monetary train wreck at this point. $SILVER will go to 200usd/ounce. I change nothing to the book and will wait. Other investors will step in to buy back the miners. $NEM (Newmont Mining Corp) is trading at 4 times revenues and 15 times net income while $SPCX (Space Exploration Technologies Corp) trading at 100 times revenues and -360 times net income. Incredible. $SILVER now 50% down compared to ATH and our book -26% to ATH from only a couple of weeks ago, just because of some talk of the new FED chairman, who will do nothing about inflation.

Not investment advice. The author may have financial interests in the mentioned instruments.