Viewpoint: Bullish
A subscriber asked one of my colleagues yesterday when are we going to press the button and by BHP or RIO after their major correction, the answer is a touch convoluted because we run real money portfolios:
Yesterday saw rarely discussed Chalice Mining (CHN) soar over 28% after releasing the results from its WA Gonneville deposit – the 6 metals in the find tick all of the current desirable boxes as the world targets zero emissions i.e. Nickel, copper, cobalt, palladium, gold and platinum. This is undoubtedly a phenomenal resource discovery with the…
The ASX200 faded away yesterday following a common path over recent weeks, every time the ASX200 knocks on the 7475 door it gets sold off, no longer surprising or new – at yesterdays close the local index had only bounced 4% from its October low compared to the US S&P500’s impressive 10% rally to fresh highs. The US feels like it’s now…
The Sprott Physical Uranium Trust (U-U CA) invests and holds substantially all of its assets in uranium in the form of U3O8.
NCM -1.58%: the gold miner has been given its blessing to buy Canadian listed Pretium (PVG.TSX) by their board in a $2.8b deal. Newcrest have offered Pretium shareholders either $CA18.50/sh or 0.8084 NCM shares for each PVG held, equivalent to a 22.5% premium to the last close. Pretium’s Brucejack mine in British Columbia is a tier 1…
EV’s use up to 4x more copper than conventional vehicles pointing to increasing demand in the years ahead. While we are mindful of the cyclical nature of all commodities when there’s an underlying demand story looming on the horizon we remain keen to buy any weakness i.e under $US400/lb.
The outstanding performance of the lithium and battery facing ETF (LIT US) is another illustration of the recent gains in stocks and commodities exposed to EV’s, it still looks bullish as does the locally traded ACDC ETF we hold in our Global Macro ETF Portfolio.
This is arguably one of the most fascinating subjects of the modern era and having walked around a car dealership on the weekend I have to say some of the EV’s are looking very nice with the important variables around battery technology such as range are improving exponentially – there are plenty of cars now in the 400-500km range while the Tesla…
Crude oil has been consolidating its strong recent gains over the last few weeks but considering the external factors in play we feel the price action is a strong acceptance of the $US80 region as opposed to anything more sinister – we remain bullish the markets perception of forward economic activity and oil prices at least into Q1 of 2022, hence we are happy to hold our positions in the likes of Santos (STO).
Overnight US stocks extended their strong rally from their October low although it has that tired feel about it which comes as no surprise considering the S&P500’s 10% rally over the last month, we are bullish but US stocks feel overdue a breather.
