Our pick last week, SoFi Technologies (NASDAQ: SOFI), went from US$18.39 on Monday, to a high of US$19.86 on Friday (up 8%).
Companies in our Top Picks list were up 47.3% on average since we initiated coverage vs 5.8% for the benchmark (TSXV).
Global equity markets were up 2.1% last week despite rising U.S. treasury yields. Rising yields indicate that the market is expecting the Fed to hike rates in the near-term. Considering the weakness in key economic indicators, we believe rate hikes will be slower than market expectations. U.S. jobs and manufacturing data were weaker than expected in September, and consumer confidence has edged lower this month. In addition, China’s economy grew 4.9% in Q3 vs 7.9% in Q2. We believe inflation and slow rate hikes will provide near-term support to commodity prices.
Supply chain disruptions (primarily due to the ongoing energy crisis) continue to drive commodity prices. Both precious and base metals gained strength last week. Zinc prices were up 19%, despite higher inventory levels on the SHFE (Shanghai).
Valuations of gold producers were up 5% WoW; base metals producers were also up 5%.
We are raising our near-term price forecasts for base metals. As gold prices have been below expectations, we are lowering our forecast for H2-2021.
The average retail price per gram fell week-over-week from $11.07 to $11.04.
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