In this Stockhead series, investment manager James Whelan, managing director\u00a0Barclay Pearce Capital Asset Management, offers his insights on the key investment themes and trends in domestic and global markets. From macro musings to the metaverse and everything in between, Whelan offers his distilled thoughts on the hot topic of the day, week, month or year, from the point of view of a professional money manager.<\/p>\n
\u00a0<\/p>\n
Good morning all and it\u2019s my sad duty to inform you that it is, in fact, not coming home.<\/p>\n
Which is good because no one wants to see me in my Union Jack suit and tie.<\/p>\n
One day\u2026 but not today.<\/p>\n
Bullet dodged.<\/p>\n
Ed: Oops wait\u2026<\/em><\/p>\n Via James Whelan<\/em><\/p>\n \u00a0<\/p>\n Speaking of dodging bullets we had Trump as a lock for the presidency since late last year.<\/p>\n Then after the Joe Biden debate performance more people got onboard that fast-moving train.<\/p>\n \u00a0<\/p>\n I think it\u2019s so over that the Dems won\u2019t even bother switching out Biden. Anyone who runs is going to lose.<\/p>\n \u00a0<\/p>\n Saying that, I cannot stand the guy, but you have to respect the flair for the dramatic.<\/p>\n \u00a0<\/p>\n Pic via Getty Images<\/p>\n \u00a0<\/p>\n There\u2019s an anecdote doing the rounds now that he still made his 9am tee time the next day. One of the cart boys posted that they were attached to his group, he sunk a 20 footer on the 9th and said something along the lines of \u201cthat\u2019s the difference between me and the shooter\u2026I don\u2019t miss\u201d.<\/p>\n You\u2019ll see a lot of those stories over the coming days.<\/p>\n \u00a0<\/p>\n Don\u2019t stop the music on bullish markets.<\/p>\n Two, maybe three rate cuts by the Fed into a Trump Presidency that is ready to take the reigns on Day One instead of blathering around not knowing how the printers work like in 2016.<\/p>\n Business friendly, anti-China to some extent again, with tariffs kicking back up a notch.<\/p>\n What people missed the first time is that he\u2019s not a war-time guy.<\/p>\n However, I do believe he\u2019ll push NATO to spend more on US arms and with Boeing exorcising all their demons (eventually) we think that BA could be a decent, albeit controversial, pick.<\/p>\n Here\u2019s a look at a weekly BA chart via Trading View, back to pre-Covid days (below). Funnily enough, based on what Boeing has been through these last few whiles you\u2019d think the chart would be in much worse shape. Robust.<\/p>\n\n I do love a good plenum and this iteration of the five-year Chinese Central Committee planning meeting is tipped to be quite bullish.<\/p>\n I\u2019m happy to be long iron ore and its derivative names (where appropriate) going into the week and beyond.<\/p>\n I am happy to do the same with copper.<\/p>\n \u00a0<\/p>\n Via FT<\/p>\n A 25% increase YOY on Chinese investment to power grid projects just in the first quarter this year.<\/p>\n \u00a0<\/p>\n We are also seeing more signs of the M&A activity predicted in copper markets recently.<\/p>\n This\u2026<\/p>\n\n Aaand this\u2026<\/p>\n\n Are just two examples.<\/p>\n \u00a0<\/p>\n Own copper.<\/p>\n Own copper companies.<\/p>\n Hold on as long as you can. Global X has the WIRE ETF, which is a handy way to own copper companies.<\/p>\n \u00a0<\/p>\n After the end-of-year rulers were run over the different factors, it was decided that small cap value was the worst place to put your money. Or something close to that. Smalls have done badly. And then, just like that, the squeeze was on.<\/p>\n IWM (the US Small Caps ETF) closed at its highest level since Jan 2022 on Friday after having two ripping days.<\/p>\n Under-owned assets that do well in rate cutting environments? Sounds like small caps to me.<\/p>\n Also whenever the smalls out perform large caps by over 3% it\u2019s wildly bullish for markets.<\/p>\n Observe..<\/p>\n Via Carson<\/p>\n \u00a0<\/p>\n Our Australian Investment Summit has been and gone in London and by all accounts was a wild success. There was a capacity crowd of fundies and investors there to see some fine Australian names with short and long term LSE listing ambitions.<\/p>\n My own favourite that we own in size is Wellnex Life (ASX:WNX)<\/strong><\/a> and they presented beautifully regarding their impending dual listing in London. Of note was this small section of the slide show that I think has been underplayed\u2026<\/p>\n Pay attention to what happens on this dual listing as we should see a rush for other companies to do the same if it does work for them.<\/p>\n\n \u00a0<\/p>\n I also sat down with Mike Jones, MD of Impact Minerals, to talk about their latest news on the High Purity Alumina asset progress.<\/p>\n Catch that podcast > here<\/a>.<\/p>\n It was lots of fun, too \u2013 something about dressing gowns, small caps and plenty on plenums.<\/p>\n Stay safe and all the best,<\/p>\n James<\/p>\n Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.<\/em><\/p>\n The post FREE WHELAN: Own copper. Own copper companies. Hold on as long as you can<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"We picked\u2026<\/h2>\n
And now\u2026<\/h2>\n
On the record\u2026<\/h2>\n
Imagery for years<\/h2>\n
Tee off<\/h2>\n
What it means?<\/h2>\n
Plenum time<\/h2>\n
From the FT<\/h2>\n
Read it again<\/h2>\n
Finally<\/h2>\n
Small caps<\/h2>\n
Speaking of small caps<\/h2>\n
Impact Minerals update<\/h2>\n
\nThe views, information, or opinions expressed in the interview in this article are solely those of the writer and do not represent the views of Stockhead.<\/em><\/p>\n