
TSE:AEM
Gold continues to remain in play, and gold stocks as a group continue to broadly lead. At the margin, we're seeing a race for resources. Globally, we're seeing a bit of anarchy and a movement away from law and order -- this is typically when gold does pretty well.
He read online that gold is like the VIX for US-international relationships. As those relationships continue to deteriorate, people pile into gold.
Still a buy today for those who don't own it. Finest goldmine operating company in the world. Track record as capital allocators over the last 15 years speaks for itself. Production growth is absolutely baked in the cake for the next 5 years, so there's no risk on that side. Importantly, growth will be from existing assets they already control. Top-quality holding.
Disclosure: A featured presenter at his conference, so he has lots of conflicts of interest ;)
Likes it. Many of its mines are here in Canada. Cautiously optimistic that current political environment is better for developing the resource industry. With pressure on currencies, sees pricing for all commodities in USD continue fairly strong.
A bit disappointed on its relative performance within the sector, but "90% of success is just showing up", and his portfolios have benefited by just being in the gold sector.
Our PAST TOP PICK with AEM has achieved its target at $334. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $246) to $270.