'Investing Is Back' – But It Looks Different

Episode #330 | October 9, 2023

Episode #330 | October 9, 2023

'Investing Is Back' – But It Looks Different

In This Episode

In this week's episode of Stansberry Investor Hour, Dan and Corey welcome Harris "Kuppy" Kupperman back to the show. He's the founder and chief investment officer of Praetorian Capital Management. On a day-to-day basis, Kuppy interprets trends to guide his stock picks. So he shares some interesting trends he sees now in the market and what opportunities these could be setting up in the future.

But first, Dan and Corey discuss the surprising employment numbers that exceeded expectations and fueled speculation about further interest-rate hikes. They also cover the turbulence in the bond market and the significance of the yield curve finally correcting after more than 18 months of inversion. While these economic indicators may not bode well for market stability in the new year, it means Dan and Corey have accurately predicted the Federal Reserve's "higher for longer" sentiment. As Corey says...         

We could observe... and think what we see is coming. But still the shoes have to drop at some point. And I think that's what we're seeing now.

Next, Kuppy joins the show to express his skepticism about the widespread belief that the world can revert to "normalcy," that interest rates will decline, and that another bull market will kick off. Instead, he explains why he thinks there will be significant changes in the next couple of years while "everyone's playing the old playbook." And he notes that this new environment could reward investors who add value and make informed decisions...

And if I know anything about governments, they'll screw things up worse while trying to fix it. It's just going to create tons of opportunity. I'm super excited.

This leads to a discussion about the need for copper in global economic growth. Kuppy argues that growing populations in developing countries will desire the same standard of living as developed nations. This will significantly increase the demand for copper, though its price trajectory remains uncertain...

I think there's definitely a floor under copper. And I'm not sure where the ceiling is, depending on what you think happens in the economy.

Kuppy also gives his take on the overall economy, addressing sectors with inflationary correlations. He describes his outlook on inflation as a series of sine waves, with periodic fluctuations of heating up or cooling down. However, he focuses on the overarching trend of upward inflation and predicts that it will surpass previous highs in the coming years. Surprisingly, when asked about homebuyers, Kuppy expects there will be a drop in housing prices, potentially creating opportunities for future buyers.

Finally, Kuppy touches on energy services and why he's bullish long term on oil despite its unpredictable price swings. He explains that he doesn't want to "be on the wrong side of this oilfield-services inflation" that he expects to happen. His parting advice for investors is to maintain a healthy dose of skepticism and cynicism. But to hear all the details, you'll need to check out this week's show.