Rick Rule, president and CEO, Rule Investment Media
FOCUS: Natural resource stocks
Top Picks: Africa Oil, International Petroleum, Ecora Resources
MARKET OUTLOOK:
Donald Trump’s election likely means a relaxation of recent permitting delays for U.S. projects and continued near term strength in the U.S. dollar. Major beneficiaries will be U.S. oil and gas companies, as regulatory roadblocks to major oil and gas transmission, and liquefied natural gas (LNG) plants are likely reduced. If the Keystone pipeline roadblocks are reduced, this could have major positive impacts for Canada. Canadian gas will already benefit from improvements to western Canadian infrastructure.
The U.S. dollar will eventually come under pressure from U.S. government debt. On balance sheet liabilities exceed US$36,000,000,000,000, while the net present value of unfunded liabilities exceeds US$100,000,000,000,000. Trump will likely be an active proponent of continued artificially low interest rates. Gold may benefit.
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TOP PICKS:
Africa Oil (AOI TSX)
International Petroleum (IPCO TSX)
Ecora Resources (ECOR TSX)
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AOI | Y | Y | Y |
| IPCO | Y | Y | Y |
| ECOR | N | N | Y |
PAST PICKS: DECEMBER 12, 2023
Franco-Nevada (FNV NYSE)
- Then: $103.80
- Now: $119.18
- Return: 15%
- Total Return: 16%
Exxon Mobil (XOM NYSE)
- Then: $98.05
- Now: $110.36
- Return: 13%
- Total Return: 17%
Sprott (SII NYSE)
- Then: $31.56
- Now: $44.02
- Return: 39%
- Total Return: 43%
Total Return Average: 25%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AOI | Y | Y | Y |
| IPCO | Y | Y | Y |
| ECOR | N | N | Y |