John Rubino, publisher of his newsletter over at Substack, joins us for wide-ranging discussion on a number of topics including BRICS nations initiatives, the effects of higher interest rates, and the energy sector being one of the bright spots lately in otherwise tough market conditions.
We start off reviewing the BRICS nations meetings and the changing global trade and currency implications out of these evolving national alliances. It is still quite unclear if we will see any more news teased or released about the potential of gold-backed or commodity backed currency, from the BRICS meeting this week; but it will at least provide clarity on some of the larger initiatives for this large trading block. One area of the markets that could be impacted most is the commodities, and in particular the energy sector. All of this also ties into the future health of the global economy, and expectations around both monetary and fiscal policies the continued pressure of higher interest rates for longer on various sectors, and the potential still there for an economic contraction in western developed nations.
With ongoing constructive macro themes in both the oil markets and nuclear energy and uranium markets, we have John share what qualities he looks for when investing in energy stocks. He has been cautiously acquiring the larger cap, more liquid, best quality names, which he believes have management teams that are executing on building quality projects and quality companies. By focusing on the best-in-breed quality companies, he feels they will survive and bounce back, regardless of if we see a sector-wide correction in a “sell-everything” type of broad market correction or crash in the future. He highlights Occidental Petroleum (OXY), Cameco (CCO) (CCJ), and Nexgen Energy (NXE), as examples of the types of companies he’s built positions in.
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