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COMMENT
Liquidate $250,000 in stocks and wait out this market downturn? He doesn't give portfolio advice, but he sees trouble ahead. The credit cycle has turned, and interest rates will--THOUGH the U.S. Fed may half further rises if the economy sharply downturns. That said, this market is grossly oversold. If we're entering a bear market, this is only getting started. He's read that 90% of CFO's expect a recession by end-2019. A downturn doesn't start this fast, though, and usually has some sort of bounce back. We'll see.
BUY
A big holding for him. Management has histoorically found big mining projects and done great job adding value by selling them or harvesting the cash flow. With the China-US trade war, base metals are out of favour, though. But he still sees value in base metals and commodities, so ALS is a reasonable buy here.
precious metals
TOP PICK
Any Canadian junior has been crushed, so he's looking for a very oversold name in an oversold sector, yet a company with a good balance sheet with some growth likely. LXE fulfills that and has no debt. Pristine balance sheet with $20 million cash. No debt. Their cash flow is break even with current oil prices. It'll likely bounce sharply in January. Also, Canadian oil is really really cheap. Over 3-5 years, you could see a 5-10-bagger. (Analysts’ price target is $2.27)
oil
gas
