Mar 27, 2023
"There a lot of themes in the global macro world right now that are firming up for precious metals," says Otavio "Tavi" Costa, portfolio manager for Crescat Capital. "We've really had five very bad decades for the stock market throughout history and I think we're going to have another one here," he tells Daniela Cambone at the 2023 Swiss Mining Institute annual conference. "There will be a 'Great Rotation,' basically a domino effect of things like interest rates being higher," Costa continues. "We are very concerned about private equity markets, mega caps, and the corporate bond," he exclaims. "A yield-curve inversion is one of the best indicators that precedes a recession," Costa argues. "On the long side, metals and mining are where you want to be," he continues. "Given the level of imbalances we have in the global economy, not just the U.S., it's hard to believe we are not going to see more things unfold," Costa says. "There's going to be a lot of readjustments of prices of fundamentals from here," he concludes.