Full episode: Market Call Tonight for Friday, February 21, 2020
Jaime Carrasco, portfolio manager at Canaccord Genuity
Focus: Precious metals and North American dividend stocks
My speculation continues to be that central banks have used up their ammunition to deal with financial problems and their only solution is to take us into a further negative rate environment. Therefore, I continue to recommend that investors hold at least 20-per-cent allocation to precious metals as a hedge for further negative rates and uncertainty. Central banks must also feel the same way because they have been the largest buyers of gold during the last two years. Now, we have the added uncertainty of the coronavirus at a time when the global economy continues to deliver anemic growth.
My current focus of interest lies in the fact that the blockchain appears to have finally hit a double-bottom since the first bubble burst in late 2018. Like the dot-com sector in 2003-2005, now is the time to begin to take a position in this exciting new technology. What fascinates me most about blockchain is that unlike the internet, it directly benefits from its implementation as it integrates throughout the global economy. The fact that Ethereum-based platforms have now crossed $1 billion in development means that global implementation is at the same stage as the internet back in the late 1980s, when only university professors were using it for communication among themselves. Today, the internet is used by all and blockchain will also grow in a similar manner. Fidelity is currently leading the blockchain charge, showing the financial establishment the economic benefit of a technology that tracks millions of transactions, clients and mutual funds through a fully electronic system, with major cost savings.
FORTUNA SILVER (FVI TSX)
We have a “buy” rating for Fortuna, with a $6.50 target.
OSISKO GOLD ROYALTY (OR TSX)
We have a “buy” rating for Osisko, with a $17 target.
I recommend holding higher cash levels until we assess the full extent of the current viral outbreak.
PAST PICKS: APRIL 16, 2019
AMERICAS SILVER (USA TSX)
- Then: $2.26
- Now: $4.22
- Return: 87%
- Total return: 87%
ENBRIDGE (ENB TSX)
- Then: $49.62
- Now: $55.31
- Return: 11%
- Total return: 18%
Total return average: 35%