Introduction

We recently had the opportunity to speak with Al Korelin, host of The Korelin Economics Report, a syndicated radio show out of Washington State available to 2.7 million listeners each week and several more via the Internet. The radio show focuses on macroeconomics and asset-based investing and seeks out informed and often opposing viewpoints for listeners through the credit, tech and housing bubble with a focus on investment fundamentals. 

During our interview at the Cambridge House World Resource Investment Show in Vancouver where Korelin emceed a couple of panels and conducted a workshop where they recorded at a radio show, he shared his thoughts and views on the stock market.

The Stock Market

In discussing his views on the stock market and the direction it’s heading as it relates to resources companies, such as gold, silver, and rare earths, he’s in agreement with guest hosts on the Korelin Economics Report show, such as Roger Wiegand and Bob Moriarty, who state there will be a downward movement in the market, but at the same time, Korelin believes that certain resource companies will see an upward movement.

“I think that we’re going to see a major drop in the – what I call the conventional stock market as measured by the Dow Jones Industrial Average.  I agree with a lot of the guests on our program—Roger Wiegand, Bob Moriarty and others—that we’re going to see a significant downward movement in that market, but by the same token, I think that we’re going to see a significant upward movement in the stock market – that portion of the stock market that represents resource companies; gold, silver, rare earths…” he continues, “A lot of people think I’m nuts when I say that because they’re saying if the conventional market falls, history has proven that the resource sector will also fall, but I don’t believe that’s the case at all”.

Korelin continues to defend his stance as he acknowledges and shares his confidence in the thoughts of experts in the area. He states, “I think that people as Bob Moriarty, who planted the seed probably a couple of years ago, and then Ian Gordon came out and said, “I firmly believe there’s three places where you want to be and those three places are number 1, gold specifically; number 2, gold stocks; and number 3, cash,” and his definition of short cash was short-term bonds denominated in Canadian dollars,” Korelin continues, “Well, I don’t know about the Canadian dollars because I’m not an expert in that, but when you have some really high-powered people saying that gold stocks, silver stocks, resource stocks, and the commodities themselves are going to do really well as the rest of the market collapses, I have to agree with them because everything that I know – everything that I learned in the university—it points in that direction to me.”

Stable Resource Companies for Investing

When asked what companies he’d recommend as stable investment choices, Korelin shared that his preference would be companies that recently went into production and that every portfolio should have some senior producers and senior companies, such as Gold Corp. He also recommends, Pediment, Gold Corp, South American Silver, Orex Minerals and Timmins Gold for reasons he shares below:

“I think the core of every portfolio needs to be probably some senior companies and senior producers (like) Gold Corp. I like companies that have recently gone into production where it would appear, or where their numbers indicate, that their asset is growing significantly even though they’re in production.  A good example of that would be Timmins Gold,” he continues, ”And then I like near-term production companies, and I would say that would be represented by companies like those mentioned above.

Tuning in to Korelin’s Radio Shows

Korelin continues to be busy recording interviews for the Korelin Economics Report which airs on the Genesis Radio Network, and the Economics Report which he hosts with Steve Carr and Clyde Harrison, the cofounder of the Rogers Raw Material Fund, which airs on the Business Talk Radio Network every Saturday from 2:00 to 3:00 P.M. Eastern Standard Time.

For more information about Korelin, go to www.kereport.com.