Dollar down, commodities up: That’s the simple mantra many investors practice. The equally trumpeted converse is that a real recovery in the US dollar would sound the death knell for vital resources. To be sure, the US dollar’s direction is important for commodity prices, particularly in the near term. From oil to copper and grains, most vital resources are still priced globally in US dollars. So when the US dollar rises against other currencies, commodity prices tend to fall. The opposite reaction occurs when the dollar rises. Read More

We’ve written extensively here and in Canadian Edge about the global resource boom that sustains the economy up north and provides compelling stories for investors. So the headline “Sprott Hedge Fund IPO May Signal Top of Canada Commodity Rally” on a May 5 Bloomberg story caught our attention. Read More

Not on your life: That’s the answer most people would give when asked whether the likes of Hugo Chavez, Kim Jong II or Mahmoud Ahmenejad would make sound business partners. With global vital resource supplies increasingly tight, however, unrest in any producing country can affect prices. And the rising wave of resource nationalism--the desire to extract a bigger cut from what’s produced within a country--is far from cresting. Read More

Canaccord Adams analyst Yuri Lynk released a bullish report on Canada-based infrastructure opportunities, naming Bird Construction Income Fund (TSX: BDT.UN, OTC: BIRDF) among his top picks. Read More

Earnings season is always a tricky time for vital resource producers. Investors are quick to ignore good results in favor of focusing on future projections for commodity prices. And if the numbers are disappointing, it won’t be long before the stocks crash and burn. From our perspective, we’re certainly interested in the headline numbers. More than that, however, we want to know what’s going on behind them. In other words, what’s going to make our recommendations more valuable as companies? Read More

Back in March, the Bank of Canada (BoC) statement announcing a 50-basis-point interest-rate cut told of “clear signs that the US economy is likely to experience a deeper and more prolonged slowdown than had been projected in January.” Read More

Vital resources are a volatile business by nature. Companies’ earnings are often pushed around by jagged price movements. Meanwhile, investor perception is notorious for both bullish and bearish wild swings. It all adds up to volatile-priced stocks. We can make a lot of money in a short time on the upside. And those profits can melt away even faster when the market mood changes, even with the long-term supply and demand fundamentals exceedingly positive. Read More

There’s a mildly instructive dichotomy to draw from the ongoing mess that is the global credit market, and then there’s a useful takeaway for investors. Read More

Evidence of a slowing US economy is more palpable than ever. Copper prices, on the other hand, hit above $4 a pound this week, surpassing the all-time high reached in 2006. Read More