With a partial trade resolution in the works, we would expect Chinese imports of copper and copper demand to stabilize globally. Also, currently speculators are at near record short positions in the copper pits, any improvement in supply and demand could trigger a short covering rally from very cheap valuations.

In the golds, we think there will be another opportunity to go overweight but at this juncture the stocks are overbought and need to consolidate. We continue to trim the sector. Given this outlook, the portfolio is biased to a reacceleration of the economy in the early part of 2020.

Although the uncertainty regarding global economic growth is weighing on valuations in Canadian small cap stocks, we believe that this is another excellent opportunity for investment. With trade talks positively advancing and central banks easing, the portfolio should materially outperform in the next twelve months.

If there are any questions as per usual, please do not hesitate to contact me.

 

 

1 2 3 4