Why Resources During a Recession
We have just finished two months of traveling and clients have never been more concerned. Recession fears loom large and 60/40 portfolios just experienced their worst half in 40 years.
Investors are questioning how they could possibly consider natural resource equities now, given how economically sensitive they are.
The answer might shock you. Natural resources respond to their own capital spending cycle much more than the broader business cycle. From that perspective, natural resource stocks ought to dramatically outperform over the next decade, even if we do have a recession.
In fact, during the Great Depression, resource stocks were the only area that would have saved your portfolio.
Our newest commentary, Why Resources During a Recession, looks at why this counter-intuitive pattern repeats itself.
This is a must-read report before you consider asset allocations for the second half and beyond.
Download our Q2 2022 commentary for insight into:
- Why Natural Resources might be the only area to protect you in a recession
- Major OPEC admissions that will impact the oil markets
- Why the Super Majors face even more trouble going forward