SmallCapPower.com recently spoke with Peter Grandich, founder of Trinity Financial, Sports & Entertainment Management Co., who also provides financial and stock market commentaries for Michael Campbell’s MoneyTalks website (http://moneytalks.net/peters-content.html)
Peter, in one of your recent commentaries you mentioned that you “find America on the threshold of an economic, social and political crisis unlike anything it has experienced in its history.” Can you elaborate on that?
Sadly, the only thing that has grown since the 2008 crisis is how many more trillions we owe and how many more people are dependent on the government to take care of them. The financial institutions who are telling people to buy, buy, buy are many of the same ones who we found out after the 2008 crisis were selling bad financial products to their clients and actually taking the other side of the bet. What they did was like the car companies selling us a faulty car and then buying life insurance on us to collect when we did in the crash. There’s been no real positive changes since 2008 and a whole host of worsening issues.
What should investors be doing with their money in this scenario?
Have very little general equity exposure except in metals, mining energy and companies that can profit from food and water shortages. Owning precious metals and the Canadian Loonie is also a good idea.
What kind of moves do you think the U.S. Federal Reserve will make this year and why?
I think they shall taper a few more times but when the economy is clearly swooning it will be pressured into another QE type move, only by then it shall be seen like Japan – behind the curve.
What’s your take on the gold market at this time?
The nasty correction ended at the New Year and we’ve clearly resumed the bull market. $1500 – $1550 will be a challenge but I think we do get over it in the next 6-12 months.
When we last spoke back in January you mentioned you were looking at Excelsior Mining Corp. (TSXV: MIN), this was just before the stock soared 358% in a single day. Would you still consider buying it at the current stock price?
I was looking at it because it was too cheap but that unsustainable rocket up has brought it back to a level where I think speculators could ponder becoming a shareholder.
Are there any other small or micro-cap stocks that you like at this time?
I own now just two stocks in this group – Sunridge Gold Corp. ( TSXV: SGC) and Teranga Gold Corp. ( TSX: TGZ). I suspect both can be takeover targets in 2014.
