“I think it is a stock picker’s market … if you make those good picks you’re being paid for it,” said Brian Leni of Junior Stock Review.
Since gold breached its previous all-time high this summer, investors have been wondering whether these elevated levels are here to stay.
Brian Leni, founder of Junior Stock Review, believes the answer is “yes.”
“I think unfortunately yes,” he said during a video interview. “And I say unfortunately because gold is a barometer of the global financial system, and what it’s telling you right now in my view is that it’s broken.”
Leni believes further turmoil is still to come, and while that’s bad news for the world as a whole, it’s good news for the gold price and potentially for investors.
“I do see some calamity ahead, and I don’t think that the money printing is going to stop any time soon,” he commented. “And therefore i think we’re going to see much higher gold prices ahead.”
Despite the positive price action for gold and other metals, Leni is doing his best to stay the course. He aims to be agnostic to metals prices and instead focuses on selecting companies that will do well regardless of what’s happening in the market.
“The way that I do that is I remain consistent in how I approach the market. (I) search for the value, search for companies that are trading for less than they’re worth — they’ve got a set of catalysts that will induce the market to recognize that value,” he explained.
And of course, those companies need to be led by good management with access to cash.
So far that strategy has been serving him well. Leni said that the last six months have probably been the most profitable he’s seen in his life — he even achieved his first 13 bagger in exploration company Abraplata Resource (TSXV:ABRA,OTC Pink:ABBRF).
“I think it is a stock picker’s market … if you make those good picks, you’re being paid for it,” he said. “And I think there’s more to come, especially on the exploration side, where the market seems to be very excited and they pay for a discovery.”
Watch the video above for more from Leni on investing during COVID-19 and where he sees opportunity.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.