Jaime Carrasco, portfolio manager at Canaccord Genuity

FOCUS: Precious Metals and North American dividend stocks

MARKET OUTLOOK:

Blockchain and Gold, plus let’s not forget silver.

The portfolios benefited very well from my BNN February 2020 call that the blockchain network had hit bottom and merited consideration. My growth portfolio, Special Opportunities was rewarded with stellar returns, and while we rebalanced those profits adding Silver and Gold Producers, I will continue to hold a 20 per cent asset allocation in the blockchain sector. The way I see it, the Blockchain Network is already building a decentralized future, and the producers will once again benefit from the global need to reset the monetary system.

Signals of a reset have become loud and clear among Central Bankers, both in the form of cryptic messages about the SDR, Special Drawing Rights, or the fact that they continue to add physical gold to their coffers. For me, the clearest indication that something is afoot is that the current bearish trend of the U.S. dollar with DXY now trading below $91.00, from high of $100.00 a year ago. Not a bullish sign, considering both the Fed and the Treasury are ready to print their troubles away, even if it means “a little bit” of inflation, and by default negative rates. Accordingly, I continue to recommend an allocation in gold and silver, the one asset class that has always benefitted from the consequences of monetary and fiscal stimulus.

In the Equity Income portfolio I continue to hold a 20 per cent cash position as well as a 30 per cent weighting to precious metals producers, hedging the extreme levels of these markets but also letting them ride. Markets will rise until they don’t, and until that day comes I will wait with some cash on the sidelines and hedge accordingly.

TOP PICKS:

Equinox Gold (EQX TSX)

New addition to the portfolio due to the takeover of Premier Gold, great to have Ross Beatty on board. Ranked BUY with a $14.00 target

Bear Creek Mining (BCM TSX)

Silver developer building a mine in Peru. Ranked BUY with a $5.75 target.

Newfound Gold (NFG TSXV)

Gold exploring with ongoing discovery in Newfoundland and Labrador. Ranked hold with a $4.25.

PAST PICKS: March 27, 2020

Alamos Gold (AGI TSX) Continue to hold - ranked a BUY with a $13.50 target

• Then: $7.39
• Now: $10.24
• Return: 39%
• Total Return: 40%

Osisko Royalty (OR TSX) Sold fall 2020 – Reduced royalty to increase silver producer content

• Then: $10.10
• Now: $15.04
• Return: 49%
• Total Return: 52%

Fortuna Silver (FVI TSX) Continue to hold – Recently announced takeover of ROXG, ranked as a HOLD but lowered target to $8.25.

• Then: $3.38
• Now: $7.58
• Return: 124%
• Total Return: 124%

Total Return Average: 72%

Website: www.cgf.com