By Angela Harmantas
Is copper gearing up for a comeback after weak import data from China? Today on Before the Bell we’re analyzing the copper price rally this week, and looking at a few stocks that could benefit. Also, one of our experts sees hope for technology and financial services stocks in a new video interview, and elsewhere, is the tide shifting for oil stocks? Here’s what you need to know today:
We’ve got a new expert interview for you today. Bob McWhirter, president and portfolio manager at Selective Asset Management Inc., is a top-ranked money manager in Canada. Bob takes us through his outlook for commodities (it’s not great) and yet sees some hope for technology and financial services stocks for the remainder of the year. He also gives us an update on some of his past picks, including a small Canadian tech company that may receive a large order this year, mentions a new name he’s keen on, and describes why there is a significant upside to a subsidiary sale for one stock in particular.
News out of China that imports fell more than 13.8% in August may actually have benefitted one commodity. Copper prices rallied on Wednesday to a 7-week high to $5,434.50 before closing at $5,365. Even though most analysts expect a short-term price rally, expectations of a Chinese economic intervention may buoy copper fundamentals. What’s more, it’s unlikely that the Chinese government will allow their market to continue to be in disarray without intervening again, perhaps in the form of a stimulus package. If that should occur, our analysts have compiled a list of mining stocks that could benefit from a Chinese government stimulus. Most have a major copper component – do you think the fundamentals for copper are stronger than we’ve seen in the recent past?
We haven’t talked a lot about oil stocks lately – there’s a reason for that, obviously, with oil prices having suffered huge drops. But I came across an article on The Street yesterday, the boldly titled “Here’s why lagging oil stocks are poised for a comeback in 2016,” that suggests that investors might want to think about getting back into oil, and do so quickly while prices are still low. Let me know if you’d like to hear more about possibilities in the oil patch, or if you’re avoiding the energy sector for now.
Do you have a burning question you’d like answered by an investment expert or analyst? Let me know and I can post the answer here in the blog. Contact me by email at angela@smallcappower.com or on Twitter: @aharmantas.
