Sprott Monthly Market Update with Rick Rule: Vancouverites are Far More Familiar with the Cannabis Business than Mining
Rick feels we are in a commodity bull market albeit a rather boring one. However, boredom is better for an investor then terror. The ability to buy in over time without having to compete with the dumb money and uneducated speculators is positive. Good well managed companies are still able to raise capital.
Rick sees that a lot of brokers in Vancouver are only interested in blockchain and cannabis. Most investors are currently absent from the markets he prefers.
Rick says, “I haven’t done any in-depth due diligence into the cannabis industry in some forty years. However, it’s amusing that so many Vancouver promoters are so intimately involved with the business, they study it nightly on street corners.” Rick has seen this kind of cash-flow into a sector many times before. He says, “You need to remember when the dumb money comes flooding in and even your mistakes go up in price… Sell! Missing the collapse is really, really, really, worth doing.”
Rick is getting a little nervous about the recent resource rally and what the effects of a recession could bring. There has been a slow but steady eight-year economic recovery, but the question is how much steam remains. We need to avoid a synchronized global recession to maintain the resource rally.
Rick feels that supply destruction has put a bottom in for uranium. He thinks there will be a lot more investor interest in it next year. An increase in the uranium price is a when question.
Talking Points From This Week’s Episode:
• The bull market is intact, and this is a buying opportunity.
• Prospect generators make a lot of sense in the latter part of a bull market.
• Uranium price increase is a matter of time.
Rick Rule began his career in the securities business in 1974. He is a leading investor specializing in mining, energy, water, forest products and agriculture. Rick founded California-based Global Resource Investments, Ltd., which grew into a much larger organization with significant affiliated companies. As Director, President, and Chief Executive Officer of Sprott US Holdings, Inc., Mr. Rule leads a highly skilled team of earth science and finance professionals who enjoy a worldwide reputation for resource investment management.