Over-extended equities valuations, excellent fundamentals and balance sheets for miners, and the volatility that election results would bring to stocks are contributing factors to the following three trade ideas: long mining stocks, short broad equity indices, and short emerging market currencies, said Tavi Costa, portfolio manager at Crescat Capital.
"I would say that the equity markets, on the short side, look very appealing to me in the next 12 months, so there is a possibility of a decoupling [between mining stocks and broad equities indices]. If there isn't I think the miners will outperform the equity markets going forward," Costa told Kitco News.
0:00 - Top 3 trades
1:58 - Investor sentiment
4:01 - Economic fundamentals
7:50 - Fed’s “suicide mission”
9:25 - Worst case scenario for economy
13:13 - Blue Wave victory and asset prices
15:35 - Equities valuations
17:17 - Tech stocks vs gold miners
19:13 - Mining stock valuations
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