Rick Rule, President & CEO, Rule Investment Media LLC
Focus: Natural Resource Stocks
Top picks: B2Gold, Amerigo Resources, Slb NV
MARKET OUTLOOK:
Globally, politics weighs heavily on economic performance. Increased social rents, taxes, tariffs, and fees consumes ever larger amounts of GDP, raising the cost of living for working people, and constraining capital formation, and investment.
Politics manifests itself too, in increasing economic nationalism, and the formation of politically aligned trading blocks.
Artificially low interest rates, while politically attractive, reward spenders and speculators, at the expense of savers.
Continue to own gold.
Three decades of under investment in basic commodities is coming home to roost and is partially at the root of geopolitical investment allocations.
No discussion of market news would be complete this week, without a mention of U.S. extraterritorial incursions in Venezuela.
Debt markets are market by time spreads, the divergence between, government controlled neat term yields, and less governable longer-term yields.
Equity markets are increasingly challenged by the narrow breadth in leadership, and dichotomies in valuations, by market cap, with uber caps enjoying very generous valuations, relative to smaller issuers.
In resources, three themes predominate:
- The debasement of the purchasing power of fiat currencies.
- Geopolitics and the rise of nationalism, and political rent extraction.
- Three decades poof underinvestment in productive capacity, which will generate increasing production shortfalls in the future.
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TOP PICKS:
B2Gold (BTO TSX)
Amerigo Resources (ARG TSX)
Slb NV (SLB NYSE)
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| BTO TSX | Y | Y | N |
| ARG TSX | Y | Y | N |
| SLB NYSE | Y | Y | N |
PAST PICKS: MARCH 14, 2025
Sprott (SII TSX)
Then: $61.23
Now: $141.75
Return: 131%
Total Return: 134%
Meteoric Resources (MEI ASX)
Then: AUD$0.07
Now: AUD$0.18
Return: 154%
Total Return: 154%
MEREN ENERGY (MER TSX) - FORMALLY AFRICA OIL (AOI TSX)
Then: $1.97
Now: $1.82
Return: -8%
Total Return: 3%
Total Return Average: 97%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SII TSX | Y | Y | N |
| MEI ASX | Y | Y | N |
| MER TSX | Y | N | N |
