Rick Rule, President & CEO, Rule Investment Media
Focus: Natural resource stocks
Top Picks: Agnico Eagle, Snowline, Aris Mining
MARKET OUTLOOK:
The cessation of the Gulf conflict, if real, is an important current story. We are very close to oil being rationed by price, rather than in anticipation of scarcity. Given the demand destruction in low-income countries, oil may see near term price declines of a substantial magnitude. Longer term, oil prices will surprise to the upside, given continuing under investment, by industry.
High nominal interest rates, and the perceived “hawkishness” of the new U.S. Federal Reserve, has led to a very strong U.S. dollar, and price weakness in other currencies, and things priced in dollars, like gold.
I continue to believe that although the dollar will do well relative to other currencies, in absolute terms the dollars’ purchasing power will fall at levels not seen since the 1970’s, given the U.S. debt, deficits, and unfunded entitlement liabilities.
The recent decline in precious metals and raw materials equity markets leaves many issues very attractive, at present.
- Market-moving news, fast: Get the BNN Bloomberg App now
- Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/subscribe
TOP PICKS:
Agnico Eagle (AEM TSX)
In my opinion, the finest gold miner on the planet. They have an admirable track record and capital allocators, mine builders, and mine operators. It is difficult for me to understand why someone would not own it.
Snowline (SGD TSX)
Much more speculative. A very rare tier one discovery, in Canada, that likely grows in both size and grade. This will be a must own for a major. Downsides include very high up front capex to build, and long lead times.
Aris Mining (ARIS TSX)
Hugely speculative. An incredible discovery hole, combined with a very large and well defined geophysical target. Lots of downside risk, but genuine 10 for one potential.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AEM TSX | Y | N | N |
| SGD TSX | Y | N | N |
| ARIS TSX | Y | N | N |
PAST PICKS:
EMX Royalty (EMX TSX)
Then: $3.63
Now: $5.70
Return: 57%
Total Return: 57%
Orogen Royalties (OGN TSX)
Then: $1.74
Now: $3.37
Return: 94%
Total Return: 94%
Sprott (SII TSX)
Then: $92.89
Now: $172.78
Return: 86%
Total Return: 88%
Total Return Average: 80%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| EMX TSX | Y | N | N |
| OGN TSX | Y | N | N |
| SII TSX | Y | N | N |
