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VIDEO — John Feneck: Fed Hike Takeaways; Silver, Copper and Palladium Stocks to Watch


John Feneck: Fed Hike Takeaways; Silver, Copper and Palladium Stocks to Watch

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Last week’s US Federal Reserve meeting brought a much-anticipated interest rate hike of 50 basis points, with the central bank also announcing balance sheet reduction plans.

Speaking to the Investing News Network, John Feneck, portfolio manager and consultant at Feneck Consulting, gave his thoughts on the news, and also shared stocks he’s watching in silver, copper and palladium.

“I think (the Fed) delivered the number they needed to,” he said in a conversation a few hours after the Fed’s announcement. “You saw that reflected in the broad market action afterwards … especially when (Chair Jerome) Powell started talking at 2:30 p.m. EDT. Our sector also got a bid, which was very encouraging.”


The question now is how the Fed will move forward over the course of 2022.

“The takeaway for us though is that you’re still looking at seven or eight hikes expected for this calendar year, and that’s just ridiculous in our opinion if they’re going to continue to go 50,” Feneck commented. “They’re going to have to go to 25 on a bunch of those in our opinion, or they’re just going to have to skip a few.”

Aside from that, Feneck spoke about the companies he likes in the silver, copper and palladium spaces.

Starting with silver, he said that while the metal’s price performance has been disappointing, he’s been looking for names that don’t need US$30 per ounce silver to do well. Those include Silvercorp Metals (TSX:SVM,NYSEAMERICAN:SVM), as well as smaller companies like Aftermath Silver (TSXV:AAG,OTCQX:AAGFF) and Golden Minerals (TSX:AUMN,NYSEAMERICAN:AMN).

Feneck is interested in palladium because of its strained supply/demand dynamics, which the war between Russia and Ukraine has exacerbated. He mentioned Canadian Palladium Resources (CSE:BULL,OTCQB:DCNNF) and Group Ten Metals (TSXV:PGE,OTCQB:PGEZF) as stocks he likes.

When it comes to copper, Feneck is looking at under-the-radar juniors that aren’t getting much attention. He pointed to Braveheart Resources (TSXV:BHT,OTCQB:RIINF) as one example, as well as Granite Creek Copper (TSXV:GXC,OTCQB:GCXXF), which he has spoken about previously.

Watch the interview above for more from Feneck on those companies and the overall resource market.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Group Ten Metals is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.



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