Episode
Erik Wetterling – Precious Metals Corrections Highlight Which Portfolio Positions Are High-Conviction Alpha Investments Versus Beta Momentum Plays
- Podcast
- The KE Report
- Published
- Jun 9, 2026
- Duration seconds
- 1071
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Summary
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins me to reflect on the status of the gold and silver bull market, after the corrective moves of the last few months. He also outlines how he is approaching rebalancing his portfolio from a high-conviction standpoint, and by weighting his positioning heaviest to the junior resource stocks with compelling alpha catalysts on tap in their coming newsflow. He starts off noting that the correction thus far in gold and silver, from the high peaks earlier this year to the recent lows is almost getting as extreme, on a percentage basis, as the moves seen in the metals during the Great Financial Crisis. For this reason he believes most of the downside price moves have already occurred across the sector, and he is not expecting a prolonged multi-year bear market from here. With regards to the junior resource stocks, his perspective is that these deeper corrections bring clarity to one’s conviction in any given portfolio position. When analyzing the downside trends that we’ve seen in precious metals stocks over the last few months, and especially during the sharp moves lower, like what we saw the end of last week; he encourages investors to reevaluate what they hold and why they got positioned in those stocks in the first place. One may feel compelled to accumulate a larger position as the price and valuation of a stock drops lower, because of the conviction they have in that company value catalysts on the horizon. The lower it goes, the more mispriced it will appear by the market, and the more compelling it will be on a risk/reward basis. In contrast, he points out being willing to sell out of a sector momentum beta position, especially if one gets lower conviction the more it corrects lower in price. This…