Dec 12, 2023
Rick Rule's Top Picks: December 12, 2023
BNN Bloomberg
Rick Rule's Past Picks
Rick Rule, president and CEO, Rule Investment Media LLC
FOCUS: Natural resource stocks
MARKET OUTLOOK:
Most financial markets are currently showing strength, presumably in anticipation of a coordinated policy of interest rate cuts. Financial markets appear to ignore war-related concerns and continued weakness in Chinese credit markets, as well as concerns around government debt and deficits.
Precious metals markets have moved higher as a consequence of the anticipation of lower interest rates and continued government spending.
Conventional energy and industrial material prices (with the exception of coal and uranium) have trended broadly lower. These moves have been attributed to weakness in China, a market reaction to former increases in prices and widespread fears of recession.
Mining and commodity-related stocks, particularly oil and gas stocks, continue to trade at substantial discounts to historic norms in the context of net present value versus enterprise value.
Political risk continues to raise its ugly head, with talk of nationalization in francophone West Africa, contract abrogation in Panama and continued anti-energy hysteria in Ottawa and Washington.
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TOP PICKS:
PAST PICKS September 2, 2022
Africa Oil (AOI TSX)
- Then: $2.60
- Now: $2.39
- Return: -8%
- Total Return: -5%
G2 Goldfields (GTWO CVE)
- Then: $0.62
- Now: $0.65
- Return: 5%
- Total Return: 5%
Reunion Gold (RGD CVE)
- Then: $0.27
- Now: $0.37
- Return: 34%
- Total Return: 34%
Total Return Average: 11%
DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
---|---|---|---|
AOI TSX | Y | Y | N |
GTWO CVE | N | Y | Y |
RGD CVE | N | Y | Y |