Legendary commodity investor Rick Rule sees weakness coming for natural resources and thinks investors should be ready to take advantage. In this special season premiere episode, he’s here to tell you what he’s buying. Rick Rule, President and CEO of Rule Investment Media, joins In the Money with Amber Kanwar to kick off a new season with his outlook for gold, oil and natural resource stocks. While higher interest rates and a stronger U.S. dollar could weigh on commodities through the rest of 2026, Rule remains firmly bullish over the longer term—and says a pullback could put the assets he wants to own “on sale.
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FROM AMBER’S DESK
All the kids are in school today and I went to bed determined to wake up early to send this off and be there for their first days. Cut to me snoozing my alarm and waking up an hour later. Tomorrow is another day.
Here are five things to know today
1.
Stocks extend losses in pre-market
With little positive news to sink their teeth into, stocks are in the red again this morning. Global oil prices are sitting at $100 per barrel while WTI is advancing for seventh day in a row thereby stoking inflation fears. The pain is acute in Europe with indices down between 1-2% as I write. The US destroyed five Iranian tankers sending prices higher today.
Tariffs are also directionally negative. Yesterday the US slapped additional tariffs and bans on Canadian goods. Items like some Canadian dairy and alcohol as well as Canadian made motorcycles are being banned while hundreds of other products face higher tariffs. The rising price of oil and higher tariffs are all inflationary and while the market is waiting to see how CPI comes out in the US on Friday the current odds suggest the Federal Reserve will have no choice but to increase interest rates next week. The TSX has previously cruised by tariff threats, but as tariffs intensify it is getting harder to hide. Trump also threatened to ban Canadian companies from government procurement process. Shares of Thomson Reuters, CGI Group, Open Text and Descartes systems were amongst the laggards. While industrials like Linamar and Bombardier were also down on tariff ire. Since Prime Minister Mark Carney walked away from trade talks on August 22nd the TSX has underperformed US equities.
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“When it comes to the near term, we think it’s fair to say that risks of a tier 1 / garden variety pullback of 5-10% have grown…” -Lori Calvasina |
RBC is warning of the risk of a pullback in a new report. Seasonality, mid-terms, the ongoing Iran war, and inflation are all seen as stalking horses for a 5% pullback. Long-term they remain constructive noting earnings and GDP growth are supportive for more gains in a 12-month horizon. To the naked eye it appears the S&P 500 has held up well against all these potential headwinds but under the hood breadth has narrowed over the past month with energy the only sector higher.
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2.
Apple to reveal $2,000 flip phone
This will be the first product launch under new CEO John Ternus. While everyone is investing in AI, Apple is going back to the future with a flip phone. That doesn’t mean it can’t be lucrative. IDC estimates Apple can sell 10 million units in its first 12 months of release and that by 2030 it will make up more than half of the foldable market. It will also be a big test of Ternus as a salesman and how he pitches product at these iconic events. And despite not having blown their brains out on AI spend like their peers, the stock has outperformed. There could be a few bumps around the product launch with Bloomberg noting shares can be weak in the days following but tend to end up 10% higher 6-months out. I own Apple.
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3.
Meta +5% in pre-market on AI personal assistant
Meta launched Muse AI yesterday releasing a standalone chat-bot that can send emails, book travel plans, and keep working even when you’ve exited the app. Where do I sign up? Analysts are generally positive especially given the stock’s underperformance. Meta is down 7% this year compared to the S&P 500 which is up 13%. Investors have been anxious about the magnitude of the AI spend without seeing a corresponding return. Muse AI offers that potential return. I own shares of Meta.
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“We believe Meta’s Muse consumer AI agent marks the beginning of a substantial product cycle for Meta that is not priced into shares” -Lloyd walmsley |
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4.
Casey’s General Store plunges 11% in pre-market
The convenience store operator beat profit and sales expectations but grocery and fuel comparable sales were well below expectations. Fuel sales actually fell which was the first time in seven quarters. Caseys is held to high bar given it trades at nearly 34x earnings (compared to rival Couche-Tard which trades at just 17x). Couche-Tard results were also less than stellar in the US, but the stock only fell about 2.5% when it reported earlier this month. The street also appears disappointed that Casey’s didn’t increase its forecast despite beating bottom line expectations. RBC’s Irene Nattel says the results aren’t that bad, overall growth is strong, and the company is outperforming peers in a tough market.
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5.
RBC launches new tech fund ahead of Canada Investment Summit
Canada’s biggest bank announced a $1.4 billion fund that will invest in Canadian tech companies with the potential to scale into global companies this morning. RBC will invest up to $416 million of its own money and presumably aim to raise the rest. The growth fund will be led by Sid Paquette, who also run’s RBCx – the technology and innovation arm of RBC. “In early discussions, RBCx has already attracted significant interest in the fund from investors who are drawn to Canada’s world-class innovators and the growing confidence in the country as one of the world’s best places for long-term investment,” said the statement. An interesting move with real dollars ahead of a high-stakes summit next week.
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