Market 'Silly Season' Warning: Rick Rule on What Smart Investors Do Now

Summary

In today's market, investors are prioritizing narrative over facts, leading to 'silly season' valuations where companies raise twenty-five million dollars on projects worth only eight million. To navigate this, always invest in your own education before investing in companies. For oil and gas intelligence, subscribe to 'The Oil and Gas Investor' by Hart Publications and 'The Oil and Gas Journal,' which offer industry-insider perspectives on technology and policy. For water stock investments, consider agricultural companies like J G Boswell and Laminera in California, which hold significant water rights that could be valuable for development. When evaluating mining companies like Predictive Discovery, focus on the net present value of their discoveries rather than solely on permitting risks. For speculative portfolios, consider companies likely to be acquired by majors, but always pay close attention to the tax implications of takeovers in your jurisdiction. While borrowing to invest can be risky in richly valued markets, Rick Rule suggests waiting for extraordinary market bottoms for such strategies. He also notes that while oil futures may appear lower, physical oil prices can be significantly higher due to current shortages, especially for nations dependent on imports. He views Germany as a challenging jurisdiction for mining due to its regulatory environment. Finally, he highlights that Equinox Gold's recent share price drop is a natural post-merger event and anticipates future growth as the company consolidates its acquisitions and disposes of less critical assets.