Goehring & Rozencwajg managing partner Adam Rozencwajg is constantly on the hunt for commodity sectors that are radically undervalued. This usually involves companies that have little-to-no profitability due to how depressed their respective commodity price is, low investor sentiment, and a relatively small amount of representation within various stock market indices. Basically, he seeks to invest in spaces that are left for dead.
In this podcast with Cris Sheridan, Senior Editor at Financial Sense Wealth Management, Mr. Rozencwajg discusses his research which indicates that commodities are as cheap as they’ve ever been relative to stocks. Further, he elaborates on how over the past 100 years, moments like this (i.e. 1929, 1969 and 1999) have been terrific entry points, since commodity stocks have gone on to outperform broad stock market indices when commodities became this undervalued.
Specifically, Adam touches on market aspects including:
- Why the oil market represents the largest dislocation between prices and underlying fundamentals.
- How demand from countries like India and China is changing the technical backdrop.
- Why non-OPEC oil production (45% of global oil supply) has declined over the past decade, with declines beginning to accelerate, and what that could mean for prices.
If you would like to listen to this podcast, please click here.