Market Outlook: Investors urged to fade oil and gold rally amid tensions
BNN Bloomberg
Jim Thorne says the oil and gold rally could fade if Middle East tensions ease, creating opportunities for investors to buy stocks during volatility.
BNN Bloomberg spoke with Jim Thorne, chief market strategist at Wellington-Altus Private Wealth, about why he believes the oil and gold rally could fade and why investors may want to look for opportunities in equities during the volatility.
Read the full transcript below:
ANDREW: Right. We just saw oil top US$100 a barrel for the first time since 2022. Let’s get more from Jim Thorne, chief market strategist at Wellington-Altus Private Wealth. Jim, good morning. How are you? What’s your main observation on oil at this stage?
JIM: Oil is a sell. Gold is a sell. Stocks are a buy. You sell parabolic moves. As we saw earlier, the chart is parabolic. Oil is in extreme backwardation. Isn’t it interesting that Kharg Island, the key Iranian export island, has not been touched? The U.S. secretary of energy was on TV this weekend saying the Strait of Hormuz will be cleared up in a matter of days.
ANDREW: Let me interrupt you. Backwardation is where short-term prices have soared relative to long-term prices.
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