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Cam Currie of Canaccord Genuity talks about metals as a vital hedge against inflationary pressure

In this InvestorIntel interview Tracy Weslosky talks to Cam Currie, Senior Investment Advisor at Canaccord Genuity Wealth Management and the Principal, Currie Metals and Mining Group, who is among Canada’s top 150 investment advisors with 32 years’ experience in metals and mining.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here), Cam discusses the changing fundamentals of the current market. “We have been concentrating on focusing clients on metals and mining for a number of reasons,” he tells Tracy. “It’s a supply side issue and people don’t understand that there’s no money going to the ground. There are no projects coming on the pipeline and with the EV movement evolving, copper over time will do very, very well.”

As well Cam says that he is “very bullish on precious metals and I’ve actually been very much a crusader in the industry. I meet with the World Gold Council on a regular basis.” He observes that short-term gold prices have been artificially kept down because of the strength of the U.S. dollar, but he remains “extremely bullish – we’re adding to positions very aggressively.” He adds: “I have a basket of companies and again they range from seniors and mid-tiers to developers. I don’t play in the junior exploration grassroots because I think that’s just too high risk.”

Cam also talks about the opportunities and risks presented by the current inflationary environment, and how some of the world’s leading precious metals investment groups are positioning themselves to counter today’s risks in the bond/equity markets: “If you have a portfolio right now with a 60/40 bond-equity composition that’s not going to work for you going forward. You have to have a metals component to hedge against the uncertainties of that.”

About Canaccord Genuity Wealth Management

We are a boutique investment management firm with offices and Investment Advisors around the world, connected to global commerce and focused on deep client relationships. Canaccord Genuity Wealth Management is a full-service firm that leverages our unique approach to commerce and clients into insight-driven advantage and personalized solutions.

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Disclaimer: This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].




Investing in the market’s volatility: Bristow’s Puts and Calls

Note from the Publisher: We asked writer Dean Bristow to diarize his day in the market for our reader’s pleasure. Please note that the below is for entertainment purposes only and is not intended to provide trading advice. Dean Bristow is not a licensed investment advisor and may not extend buy or sell recommendations. One final note: Prices where stated are in Canadian dollars.

Wow! What a wild ride over the last several days in the market, to say the least. The old adage that the market goes up like an escalator and down like an elevator was pretty accurate for this microcosm in time. I have been completely engrossed by the market action since the first U.S. bank earnings came across the wire on Jan 14th. You could already see the market getting twitchy and unsettled which could signal that it was time to get defensive, or it could be a sign of opportunity knocking. Now typically I consider myself an investor and not a trader but every once in a while, I get a little too self-confident and think I can possibly outwit the market. This is a tale of my last week in the markets and only time will tell if I’m smart, lucky or about to get my face ripped off.

As I noted above, things got started for me after J.P. Morgan Chase & Co. (NYSE: JPM) released earnings on Jan 14th. Despite beating on earnings and revenue, guidance was for higher expenses and moderating Wall Street revenue leading to a potential dip in returns relative to recent years. This caused J.P. Morgan’s stock to fall over 6% on the day, which is a huge single day move for a boring bank stock. To me, this was a case of opportunity knocking. With the specters of inflation and higher interest rates, which are typically a boon for financial institutions, I decided to act. With the stock trading at around $158 at the time I sold near term (Feb 18/22) puts with a $150 strike for what I thought was a pretty reasonable return of $1.36. For those not keen on options trading, it means someone has the right to sell me JPM at $150 any time between now and Feb 18th, in the meantime I collected $1.36. From a technical perspective, I thought $145 was a solid floor or a technical support level and was happy to own JPM at a net price of $148.64, with limited downside. I figured I might as well generate some income while the market figures things out.

Obviously, that wasn’t my smartest trade as turned out that Jan 14th was merely the beginning of this latest market correction. At one point in time yesterday JPM traded at $139.60 putting me offside 6% before I even own the stock (most of the time options get put to the writer at expiry, or within a few days thereof, if they are “in the money”). Remember, I’ve committed to pay $150 for this stock less the $1.36 I’ve already collected. The safe move would have been to buy back the put option, terminate the obligation and take my lumps. You’ve probably figured out by now that this isn’t a story about the safe path forward.

The market continued to swoon and by last Friday it was looking pretty beaten up. Surely it was time for dip buyers to step up to the plate. So, I pulled up my charts and looked for some more technical support levels and decided to try again. This time I targeted Amazon.com Inc. (NASDAQ: AMZN) and Palantir Technologies Inc. (NYSE: PLTR). The latter being a play on the double whammy for stocks that are large holdings of Kathy Wood’s ARK Innovation ETF (AMEX: ARKK) and its massive outflows through this stretch. The theory being that big holding in ARKK are seeing double selling pressure from both the fund and individual investors. Keep in mind this is Dean logic, not necessarily market logic. Again, I was selling puts, albeit short term on PLTR (Feb 18/22 $13 strike for $0.84) and longer term on AMZN (Jan 20/23 $1,740 strike for $32.31) given I have more comfort and conviction around being a shareholder of AMZN. As of mid-day Monday, this was looking like strike two, as I was still too early.

They say fortune favors the bold so for better or worse I went back to the trough yesterday. For me, the market action on Monday was a complete adrenaline rush. I had charts and options chains open in several different windows. If I had more screens, I probably would have looked at a lot more and transacted a lot more. However, because my wife is still working from home, and I’ve been relegated to the kitchen table with my laptop, I did as much as I felt comfortable doing, which wasn’t insignificant (at least for me). A summary of my executed Monday trades are as follows:

AMZN – Sell Jan 20/23 $1,650 PUT @ $42.73

JPM – Sell Jan 20/23 $105 PUT @ $5.39

PLTR – Sell Jun 17/22 $10 PUT @ $1.29

SHOP – Sell Jan 20/23 US$430 PUT @ $29.45

V – Sell Jan 20/23 $150 PUT @ $7.60

MSFT – Buy @ $287.91

FB – Buy @ $302.00

CYBR.TO – Buy @ C$41.84

I also bought a small amount of crypto on both Friday and Monday, because, apparently, I’ve been locked in my house for far too long and I’m in desperate need of stimulation. There were also several more trade orders that didn’t get executed. And if that wasn’t exciting enough, about an hour before market close when I was taking a breather and staring out the window to try and relax, I caught a porch pirate attempting to make off with a package from the neighbor’s house. A ran outside and yelled at him and he put the package back and ran away but at this point in time, I had to turn off Bloomberg TV and close my computer screen to decompress. I didn’t see how the market finished the day until about an hour after the close. I’ll be happy when things calm down a little and I can put all this excitement behind me. Once every couple of years for market action like this is plenty for me.