The colloquial word HODL, or "hold on for dear life," is a term that originated in the crypto community but has since been adopted by investors through popular memes in English.
Even when the price of gold falls, he says, physical demand for the yellow precious metal is strong and gold miners continue to perform well: "Many gold miner stocks perform well - 60% of gold miners have free cash flow."
As for inflation, Holmes said it was well above the official figures. “The cost of everything has skyrocketed. I think that [...] if you use the 1980 consumer price index, then inflation is 15%. It's not 8% or 9%." However, according to him, the market assumes that US interest rates cannot be raised too much due to the US midterm elections this year.
In addition, Holmes is keeping a close eye on China to see when restrictions due to COVID-19 will be eased. “When the Chinese authorities ease the covid restrictions, there will be what usually happens in such cases - there will be a huge increase in demand,” the expert said. Such demand can even cause problems with the balance of the supply chain.
He advises buying stocks in commodity companies: “I think that when China lifts the restrictions, you should buy any stocks in commodity companies that have real reserves of raw materials in the ground in a safe country, because I think their prices will explode to such an extent that like we've never seen before."