Doug Casey, Brent Cook, Adrian Day, Matt Badiali, Keith Fitz-Gerald, Chris Gaffney and Byron King discuss their investment ideas and top stock picks for 2017.
At this year’s Sprott Natural Resource Symposium, seven mining and commodities experts shared their ideas and strategies for the year ahead in a packed panel.
Moderated by Rick Rule, the talk featured Doug Casey of Casey Research, Brent Cook of Exploration Insights, Adrian Day of Adrian Day Asset Management, Matt Badiali of Stansberry Research, Keith Fitz-Gerald of Money Map Press, Chris Gaffney of EverBank World Markets and Byron King of Agora Financial.
During the 40-minute discussion, Rule asked participants to share their resource market expertise with the audience. Read on to learn about their investment ideas and stock picks for the year.
How to profit in the current bull market?
Rule started off by saying that he believes we are in the early stages of a bull market, and asked participants how investors can take advantage of the current market.
Cook explained that currently most major companies do not have the reserves to replace their output, and as a result we will see more investment in junior mining. Day added that increased regulations are making it take longer for mines to come online, making it more expensive to ramp up operations. He believes that in the year ahead there will be a focus on “bigger and surer” deposits.
Giving a financial perspective, King said that banking is in a precarious situation right now, and funding projects is going to be very difficult. Gaffney turned the discussion to demand — he expects consumption from China and India to spike in the next few years.
Fitz-Gerald sees a lot of speculation about cryptocurrencies, but is expecting the US Federal Reserve to bring that back to precious metals.
What commodities will perform well?
Rule also asked participants what commodities they expect to do well in the next year. Casey said that all commodities will do well “at some point,” but he is bullish on gold as he sees it continuing to be used as money. Badiali explained that he is optimistic on electricity, and “whatever we can use to create it.”
For his part, Day said he is bullish on gold and copper, and Cook agreed, adding that he is also expecting zinc to perform well. Looking outside metals, King is optimistic on water and technology. Fitz-Gerald also likes water and gold for the year ahead, but he expects gene therapy to surge in the next few months.
In the currency markets, Gaffney expects South Africa, Brazil and Australia to perform well, and is most bullish on the Australian dollar.
Top stock picks
Finally, Rule asked each expert to share one stock that they expect to do well in the next 12 months. Here are their top picks:
- Casey — Metalla Royalty and Streaming (CSE:MTA).
- Badiali — Transocean (NYSE:RIG).
- Fitz-Gerald — Raytheon Company (NYSE:RTN).
- Gaffney — As a currencies expert, Gaffney suggested the Russian ruble.
- Day — Evrim Resources (TSXV:EVM).
- Cook — Mirasol Resources (TSXV:MRZ).
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.