Q: Hello,
Looking to enter a new position. Thoughts on which would be a better buy today for a long term hold? And your opinion on copper going forward.
Thank you.
Looking to enter a new position. Thoughts on which would be a better buy today for a long term hold? And your opinion on copper going forward.
Thank you.
5i Research Answer:
We think copper will be OK, but we would except short term weakness as the global growth scenario has changed dramatically in two months. An end to the tariff war would reverse this, but it is hard to see that in the short term. It is a cyclical metal, and the AI/electricity party may be over for the metal for a period of time. But we do think it recovers nicely, whenever global growth rebounds. We would be OK holding some exposure but not overweight. Of these two, TECK.B does have a more diversified resource business. It is also debt-free with $2B cash right now. We think this makes it preferable in the current high-risk environment.