As the US stock market declined into bear-market territory and had its worst week since the crash in March 2020, retail order flows marked the largest selling week in the last five years. All that selling helped ZeroHedge characterise this quarter as “the longest run of quarterly declines since the 2008 crisis”.
With the Bank of England (BOE) announcing that it will revert to the printing presses once again, the dollar had a rather rough week; opening the runway for commodities.
- The top 3 best-performing commodities this week were:
- Eggs (US): +25%
- Natural Gas (UK): +20%
- Lead: +7%
- The top 3 worst-performing commodities this week were:
- Propane: –12.5%
- Nickel: -9.8%
- Cotton: -9.7%
What is this week’s show about?
- I spoke to Andy, host of “Finding Value“, about the state of the economy. He told me about his expectations of a recession, as well as his expectations of which commodities will do well in the future. Andy expects a recession within the next two years. More specifically, he expects a recessionary inflation period to prop up commodities like oil, gas, and uranium. Over the long run, Andy is also bullish on base metals like copper. He prefers to leverage the large, cash-flow positive companies to profit from this expected commodity cycle.
- I spoke to Chapman, publisher of “Proven Reserves“, about Cameco’s $1.5B base shelf prospectus. He told me what he thinks the uranium producer will spend its money on, as well as what that means for the company and the uranium market, as a whole. Chapman thinks the money will be spent on increasing Cameco’s enrichment and/or conversion capacity. He doesn’t believe they will be looking to buy NexGen. In the off chance that they do want to buy a smaller company, Chapman thinks Cameco is more likely to go for ISO.
- I spoke to Pedro, a Portuguese software engineer who specialises in the energy industry. Pedro told me he’s not invested in uranium, as he is not ready to take on the risk. He prefers stable, blue-chip commodity companies that pay dividends. His top 3 stocks were; Rio Tinto, Southern Copper, and Sibanye-Stillwater.
- I spoke to Bruce Counts, CEO of Lithoquest Resources – a paying customer of Resource Talks – about the recent news releases in which they reported up to 166 g/t Au from their recent grab samples.
Antonio Atanasov is not an investment advisor. Antonio Atanasov might own shares of companies mentioned in this publication. Always assume him biased. The information provided in this publication – and all other publications by Resource Talks – is impersonal in nature and meant for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple licensed, experienced, and qualified investment advisors. Get numerous opinions before taking your own decision in the end. The minimum risk on any investment mentioned in this publication is 100% loss of capital.
Shortly: you will lose all of your money and possibly most of your brain cells if you listen to talking heads on the internet. Especially if they have orange hair and no experience (me).
Readers are cautioned that this presentation likely contains forward-looking statements about expected future events and the financial and operating performance of any companies potentially discussed herein. Reality often varies from people’s expectations. Managements like over-promising and under-delivering. If a manager was speaking in here, beware. Readers are encouraged to read the Cautionary Note on Forward-Looking Information and to consult the Company’s Annual Information Form, which is available on www.sedar.com. Reading the full disclaimer on the disclaimer page on this website is mandatory.
Was there something wrong with what the guests said? Did I fail to ask an important question? Did I make a mistake? Please tell me about it. Criticism and skepticism are highly welcome and help me learn. Thank you.