Author Larry McDonald’s long-term high conviction list

New York Times bestselling author and CNBC contributor Larry McDonald published his long-term high conviction position list in an issue of The Bear Traps Report, published on Sunday.

McDonald wrote that his team is actively hedging their longs positions with shorts in Apple (AAPL), the Nasdaq (COMP.IND), the S&P (SP500), and long volatility.

“Throughout 2021-22, we were overweight both energy and non-energy commodities,” he wrote. “In mid-2022, we began to lighten significantly on our exposure, into strength -- namely in the energy and industrial metals spaces.”

To the high conviction list were added Antero Resources (NYSE:AR), Rio Tinto (NYSE:RIO), Newmont (NEM), and Chevron (CVX).

McDonald also said he remains bullish value equities, relative to the growth stocks, and that the Federal Reserve will cause “a significant break in the economy,” pushing for a weak USD, which would cause an upside to non-US equities.

This is the long-term high conviction position list:

• Sprott Uranium Miners ETF (URNM)
• Cameco Corp. (CCJ)
• Teck Resources Limited (TECK)
• Hecla Mining Co. (HL)
• Global X Silver Miners ETF (SIL)
• VanEck Gold Miners ETF (GDX)
• Newmont Corp. (NEM)
• Rio Tinto Group (RIO)
• Cleveland-Cliffs Inc. (CLF)
• Vale S.A. (VALE)
• Antero Resources Corp. (AR)
• Energy Transfer LP (ET)
• Schlumberger Limited (SLB)
• Chevron Corp. (CVX)
• Greenlight Capital Re Ltd (GLRE)
• Intel Corp. (INTC)
• iShares MSCI United Kingdom ETF (EWU)
• Vodafone Group Public Limited Company (VOD)
• iShares MSCI South Korea ETF (EWY)
• iShares MSCI Brazil ETF (EWZ)
• Alibaba Group Holding Limited (BABA)
• iShares China Large-Cap ETF (FXI)