Bart Melek

[music] >> Hello, I'm Greg Bonnell. Welcome to MoneyTalk Live, brought to you by TD Direct Investing.

Every day, I'll be joined by guests from across TD, many of whom you'll only see here.

We're going to take you through what's moving the markets and answer your questions about investing.

Coming up on today's show, we are going to take a look at what the different US presidential election scenarios could mean for the commodity space. TD securities Bart Melek joins us. MoneyTalk's Anthony Okolie is going to have a look at any report for the outlook on the REIT sector. In today's WebBroker education section, Jason Hnatyk is going to shows how you can find commodities information here on the platform.

So here's how you get in touch with us.

Just email moneytalklive@td.com or fill out the viewer response box under the video player on WebBroker.

Before we get to all that and our guest of the day, let's get you an update on the markets.

We will start here at home with the TSX Composite Index. Last time I checked, we had some green on the screen.

Triple digit again on the TSX of 107 points to 22,366.

Among some of the most actively traded names today, we are in the thick of earnings season right now. I just want to show you Manulife at this hour. Looking a little stronger than the street was expecting. Manulife is up 3.5%, at $34.75 at this hour. The Shopify report was earlier this week but there was a step back in the shares, down another about percent, $85.18 per share.

South of the border, we are still in the thick of earnings season. There have been some disappointments but we have indications that the US labour market is continuing to cool and that gets investors thinking about rate cuts from the Fed, although the timeline has been pushed out quite a bit to later in the year. At 5199, the S&P 500 is up about 1/5 of a percent.

Tech heavy NASDAQ, how is it varying? It is keeping pace with the broader market. Up 39 points or one quarter of a percent. Airbnb, some disappointment for the short-term rental company. Right now at 147 and change, that stock is down almost 7%.

And that's your market update.

Although it's still several months away, investors are increasingly focusing on what the US presidential election could mean for different asset classes, including commodities. Joining us to discuss, Bart Melek, global head quantity strategy at TD Securities.

Great to have you back.

>> Great to be back. Thank you for inviting me.

>> I believe you just published a report on this topic.

We are several months away but investors are asking what it could mean.

>> I did indeed publish a few weeks ago. First of all, I want to say it's complicated because we have no idea really who was going to take the White House and certainly we all have private opinions but I certainly don't feel qualified to be calling who's going to win, who's going to take the house or the Senate, but we can go through some scenarios of what it could potentially mean for various commodities.

The general view on my end is that if the Republican Party takes over as the governing party in the United States and control the house, the presidency, the White House, it probably means less environmental spending than before. Of course, the Biden administration has had a historic passing of the inflation reduction act, which allocates hundreds and hundreds of millions of dollars to initiatives like subsidies for battery-operated vehicles, new non-CO2 generating capacity, and that could be solar, that could be wind, there's nuclear, power transmission lines, investment directed towards charging stations for EVs. All sorts of spending like that. And we think that if it is a Republican administration that ultimately takes over the Senate and the presidency, maybe on margin there will be less allocation and that has specific implications for copper, silver and all the other metals that are associated with the drive towards a net zero economy and of course there would be implications for the oil sector as well.

>> That's what I find fascinating about this because it's simple to say this kind of a White House means this for commodities, but it depends on which commodities are talking about and which administration.

Let's dive deeper into that.

You said if it's not as big of a post for lecture vacation, there is an impact on copper and others, but the oil and gas side could be looking more favourable.

>> Absolutely.

One thing that you don't need any legislation is regulatory action or executive action from whoever the sitting president is and that brings me immediately to pollution standards and it is likely that if a Republican sits in the White House, it could very well mean that those standards aren't going to be as ambitious as they are now eight years though. What are the implications for that? Well, right now, under the current plan, people are estimating that some 60% of new vehicles in the next eight years or so being sold, 20 or 30 or so targets, it could be EVs, battery-operated electric vehicles. If that standard is not enforced or is changed or made not obligatory, I don't know what form that would ultimately take, that would depend on specific policy. What could it mean? It could mean that you are using less metals that are directed to these pure EVs. Copper is number one.

There is much more copper being used, some 52 kg or so, for electric vehicles than a standard ice vehicle.

Of course, lithium and cobalt and other metals as well.

And that means, at least in the US market, well they're probably still will be growth, we are still seeing growth right now, but it is already happening that the consumers are having distance anxiety. People are worried about the lack of charging stations and infrastructure associated with it that doesn't really exist yet. And we are seeing the rate of sales lower.

We are hearing of inventories growing.

And we are already starting to see that. What happens if the funding doesn't materialize or these standards are diminished?

>> I want to ask you about the difference between government policy and where industry and society is headed.

Obviously, you can't separate the two because there have been incentives that I think ought some buyers into the market for EVs.

>> That's right. If they disappear, probably a lot of demand will.

I don't think that's a function of people not wanting to but it's an affordability question. They are significantly more expensive than a standard vehicle.

But on the other hand of the argument, there is a positive. Chances are, if you're not going pure EV, you're probably not also fully illuminating the drive to higher efficiencies. You probably are going to be using more hybrid vehicles to achieve that.

Those are either plug-ins, smaller batteries that still have them, or may be kinetic ones that are in plug-in but are more efficient. Well, what that means is probably a platinum and palladium would do a lot better than under the other scenario because the loadings would be the same as a standard vehicle, but you would also have batteries accompanying them as well. So maybe on the margin, less demand. We still think demand will outpace supply in the long term under both scenarios, but clearly one regime of government is much more positive for the metals like copper and lithium and silver than the other. But that doesn't mean it's an outright negative.

I think it's all positive broadly, but it just degrees of it, as I warns the viewers, it is quite complicated.

>> Investors like to get ahead of things.

We don't have a crystal ball to determine who will be in the White House after November. There are only scenarios you can consider. It's hard to say this and this and this means this.

>> It's a tough one because you don't know how policy is going to rule out. There could be intensive lobbying from the industry to continue part of what's been happening under the Biden administration into any possible Republican future as well because they make commitments already and spending so they might want to write them off just quite yet. In addition to industrial metals and oil, there are implications for something like gold. We are seeing astronomical debt levels in the United States and massive projections for deficits over the next few years. In fact, deficits over the next 30 according to the Congressional Budget Office. I'm laughing a little bit because they are big numbers. We are talking 3 or 4 trillion right now which is going to grow. We are looking at another 1.6, not billion, trillion, another 1.6 trillion of deficits over the next few years. So a lot of deficits over a long time.

Under Trump as a candidate, it would likely be that those astronomical deficits would be even bigger.

>> Start delivering tax cuts for corporations, less revenue coming in.

>> And I haven't really heard very much on the revenue increase side, I've heard the opposite. It's quite different on the Democrat side. They are actually talking about higher taxes down the road. We certainly haven't seen any plans at this point to cut expenditures in any material way. So deficits would likely grow.

What does that mean? Ultimately, it means that the economy will be functioning it beyond capacity for prolonged periods and that typically implies higher inflation and probably higher interest rates but not necessarily on real terms because the Fed might very well want to accommodate full employment mandate, the Federal Reserve has a dual mandate for full employment and price Diblee. At this point, they seem very much skewed towards one but that doesn't necessarily mean they won't try to shift to the economy if it slows down. If they don't hit the 2% inflation target for a while, if it's elevated above 2% for a while, there is concern. That's a beautiful story for gold and part of the reason central banks are buying right now because they are quite concerned that in the long run, US deficits are going to be out of control and they might even have a bigger out-of-control scenario if we have the Republicans take over and that could mean a stealth form of monetization which ultimately prompt investors and central banks to allocate more gold in the portfolio mix in FX portfolios.

We have already seen gold benefit from central banks like the People's Bank of China and other central banks buying record amounts of gold over the last two years.

It looks like they are strong buyers right now. China had another months of consecutive purchases. And if you see that accelerate, the Federal Reserve easing, it could very well mean that gold goes up even higher.

In fact, we are talking about $2400, $2500 from a trading perspective in the next 6 to 9 months, maybe even sooner. And there is another scenario. Right now, the China US relationship is not very friendly but it's been the aggression and the narratives are being pulled back a little I think under this president.

Certainly from the statements made by Trump and some of his advisors point to a more adversarial relationship.

We don't know what's going to happen but if that's the case, retort over Taiwan, South China Sea, military deployments, trade restrictions, tariffs, that might come to a bigger front than it is now and that could very well prompt China which only has a small amount of reserves in gold, something like 4.3% or so, to really, really got more aggressive. Remember, they have about 3.2 trillion in reserves, most of it US dollar based, so if the situation gets out of hand, who knows?

They might be fearful over sanctions. We are not predicting sanctions. We are not protecting any sort of military conflict. What we are just saying is that there could be more tension and the risk of that is higher than it would be under a bite and administration.

And that means more potential demand from the official sector, particularly from countries that are not particularly affiliated with United States of the Western world. So those are very, very interesting developments that could occur before and after the election because as we get closer to November when people cast their vote, I think it's going to get very, very, very interesting. I think people are going to get to debates, you're going to have the temperature of the debates rise quite a lot, people are going to take may be more extreme sides of the argument on either side and I think that's probably going to move markets. Gold certainly comes to mind has one of those markets.

>> Lots of moving pieces there. Always fascinating stuff and great insights with Bart Melek. A great start to the show. You will get your questions about commodities for Bart Melek in just a moment's time. And a reminder that you can get in touch with us any time.

Just email moneytalklive@td.com or fill out the viewer response box under the video player on WebBroker.

Right now, let's get you updated on the top stories in the world of business and take a look at how the markets are trading.

Let's check in on Canadian Tire, delivering stronger-than-expected earnings despite a challenging consumer environment. Same-store sales, a key retail matter, were down 1.6% in the most recent quarter, but it's retail gross margins were strong.

In a note to clients, TD Cowen said Canadian Tire is well-positioned when consumer demand picks up again.

Put it all together, the stock is at $144 and change, a little more than 6%.

I want to check in on shares of Airbnb. They are under pressure. The short-term rental company beating all the top and bottom line for the most recent Cordis. What's the concern?

It appears to be the forecast, not what's behind them but what is ahead. Airbnb second-quarter revenue projections coming in lower-than-expected.

The stock is down almost 7%.

Manulife handing in and earning the speed, strength and its wealth management business and its operations in Asia. The lifeco says it's a core earnings the Asia business were up 39% year-over-year and the wealth management business saw a 25% increase. You got Manulife up about 4% at this hour.

Quick check-in on the markets, we will start with the TSX Composite Index, up a little more than half percent. South of the border, earnings continue to pour in but also some indications of a weakening US labour market. Up 14 points are about one quarter of a percent.

All right, we are back with Bart Melek, taking your questions about commodities. Let's get to the first one here. What should we expect from the upcoming OPEC+ meeting?

>> That's going to be tricky. As of now, my understanding is that in reference to the continuation of the 2.2 million barrels per day cuts that were implemented a while back. My view is that OPEC really has no choice but to extend those cuts, even though we think that the market is going to be roughly balanced with maybe a tilt towards a deficit in the third and fourth quarter of the year, but I don't think OPEC will have the ability to increase production. And the big reason, of course, is because other producers in the United States, Canada for one, pipeline to the West Coast now, our increasing production. Of course, there are other players as well. And that means that OPEC increases production, the market will be in a pretty significant oversupply situation so I think prices may very well be range bound and I think was a pretty significant risk to the downside if we are going to start to see hesitancy to withstand those cuts.

There is another factor brewing here. Countries like Iran, which have been sanctioned, and our sanction, want to increase production. They are looking at ways of skirting it. Russia continues to supply. And within OPEC+, within that cartel, there are tensions building between Saudi Arabia and other producers and members who are increasing their capacity. They recently had a quota increase.

But they would like more.

Everybody would like more. Saudi Arabia has 3 million barrels of spare capacity as well. So it's not going to be easy to come to an accommodation too much. There will be pressures to increase supply but if they do in the current demand scenario, which is roughly about 1 million barrels per day growth, that's a sharp decline from roughly 2.4 million barrels in growth last year, to do anything. They are stuck between a rock and a hard place here.

Demand is growing, but supply is also growing and there is a risk that supply from OPEC will grow faster than demand. If we see hesitancy on the demand side or any concern that demand might falter, if we see US data start weakening significantly, at least in the short run, there could very well mean that oil prices could correct to the downside here, and of course that means because oversupply could very well be happening.

Why? Because it would be very difficult for OPEC at this stage to continue to lose market share. I think they may not want to at this point, there will be internal pressure to do that.

Saudi Arabia already did the bulk of those cuts. Other countries which have spare capacity as well and you capacity coming on, it's not going to be an easy thing to agree to. So there is that risk. We are thinking that we could go up another three or four dollars as… >> We actually had a viewer senator question. You mentioned range bound there and our viewer's ears perked up. Is oil range bound now under those scenarios?

>> I think it is.

Ultimately, our view is that OPEC does stay disciplined, but it's not going to be… It's not going to be an easy sell. Ultimately, I think there will be a lot of trials before the next meeting and we will see how the market reacts. Sort of probe the market with various stories coming up. Ultimately, I think they do you agree to extend it for as long as needed. It has always been OPEC's policy to keep the market well supplied and in balance and if they think that there is a demand-side risk and they think the market is pretty much well supplied right now, it may be even a small deficit over the next few quarters for no other reason than seasonality over the next quarter or two, they might look forward and say, well, there's that demand risk. We might keep the market a little tighter because we expect demand to maybe weaken. Remember, US interest rates will ultimately slow the economy. They haven't yet but if they do, that ultimately means that average consumption will be impacted as well and that could happen later in the air. Certainly, the Fed thinks it's going to happen.

Certainly, enough to allow inflation to come down closer to their target and they are going to start, we think, in September to cut policy rates.

>> Interesting break down there on the dynamics in the oil space.

As always, make sure you do your own research before making any investment decisions.

we will get back to your questions for Bart Melek on commodities in just a moment's time.

And a reminder that you can get in touch with us any time. Just email moneytalklive@td.com.

Now, let's get to our educational segment of the day.

We are talking commodities on the show today. If you are looking to find more information on my broker, there are tools that can help.

Jason Hnatyk, Senior client education instructor with TD Direct Investing joins us now. Great to see you.

Let's talk about tracking the performance of commodities and web broker.

>> Let's talk about it. While we are not trading commodities themselves are futures contracts, doesn't mean it's any less important to stay up-to-date with their prices, whether or not we are using them as a bellwether for the economy or maybe you've got exposure in your portfolio stocks and ETFs.

Let's jump into the platform and see where we can start. There are two areas I want to show off. The first is how we contract prices across different areas.

We are going to look first under research and we are going to go under markets overview. So much information is available on this page from broader market news, we can even access global indices price tracking on this page.

Going back to the energy section to keep in line with what you and Bart have been talking about, we have West Texas crew to the top the list, the WTI which many people keep a close eye on. We can see our last traded price as well as the change for today's trading session and if we move just a little bit over to the right, this is akin to a 52-week range that an investor might look at if you're thinking about a stock or an ETF.

This tracks the lifeline of the May contract on the WTI. It is ranked from low to high.

This happens to be resting squarely in the middle of its pricing over that time period.

Let's say we want to get a bit more information. I'm going to bring us back to the top of the page and move this over to the new section.

There's this categories option. If I choose categories, I can filter for specific things that are really important to me. If I uncheck all these categories and I go ahead and select our commodities area, you will notice that not only from today but going back through recent history, there all the new stories that are really going to impact the information I'm looking to accumulate. Web broker has got you covered.

>> Someone's going through web broker, they are doing some research on commodities, they are not trading commodities on the platform but someone might be thinking about equity plays related to commodities. How do you start linking this together?

>> It's one of those things if you don't have exposure maybe you are looking for an opportunity to diversify.

Web broker has many tools that can help you there. I want to show you that apart from stocks is a way to get some broad-based exposure on the platform using ETFs.

We are going to accomplish that by using our screeners tool. Back to web broker we go. This time under research again, under the tools call and this time, we've got our screeners capability. We've been on this page many times in the past on the program. We can screen for specific stocks. We can screen for specific technical events as well as mutual funds and ETFs.

Let's choose ETFs.

We've got some other screens available that a broader base but if you want to start creating your own screen, there is a great custom screen opportunity over here on the right-hand side of the screen.

From here, this is where we can start digging into finding exactly what were after. If we select fund category and choose that criteria to get added to the list, there is an extensive list to drill down on. I'm looking for the Canadian commodity selection.

Let's scroll down to that.

There's the Canadian commodity.

We will select the Canadian geographical location. We can see that our results have been reduced down to 28 separate commodity ETFs.

That includes mutual funds with ETF screens. If we are looking for just ETFs, we can uncheck the mutual funds section and we are now down to 19 matches. We have narrowed that list down quite promptly with just two criteria.

We have a nice list that we can view. You have the opportunity to compare and contrast up to five funds at a given time and if you are looking to dive in a little bit deeper to look at news and portfolio holdings, select the symbol and you got an opportunity to get to the summaries or jump right into buy or sell if you are ready to make those decisions on the platform.

>> Great stuff as always. Thanks for that.

>> It's my pleasure.

>> Jason Hnatyk, Senior client education instructor with TD Direct Investing. For more educational resources, you can check out the learning centre on web broker or use a QR code to navigate to TD Direct Investing's YouTube page. There is a code right there.

You're going to find more informative videos through that code.

We are back with Bart Melek take your questions or commodities. Can you guess please comment on his outlook for natural gas pricing?

>> Well, better than it was.

As I'm sure everybody has seen, the winter has been fairly mild. What that means is we really used a lot less gas than we would during a normal winter.

The reality is that inventories are higher than they would be during a normal period of use and that means that the injection season is going to be a little less robust and supplies are ample. Certainly in North America. You don't see the huge increases in LNG export capacity growth.

We have seen some liquefied capacity come back after being down and that has been a while since that return so we had an improvement but we don't see huge rallies because ultimately we are not going to see an injection season as a robust as we would hope. It depends on what you're hoping for. If you're consumer, you hope for less.

>> My bill was lower in this mild winter.

>> Yeah.

That's just the reality.

There's plenty of supply and we could see these moves higher beyond where we think and that could very well be driven by a lot of cooling degree days where you are boosting up air conditioning and that takes electricity. The other factor is we are switching in many jurisdictions to solar, wind and others and that is eating into demand for hydrocarbon natural gas.

>> A good breakdown of natural gas there. You briefly mentioned transmountain earlier in the show. If you want to know if that will have a big impact on Canadian energy?

>> Probably not a huge impact. We see Western Canadian select and WTI spreads probably improve, so basically has more and more oil over time goes to Tidewater's and other markets than the United States, it tightens up a bit and that means a discount for Canadian product becomes less and that's a good thing for Canada, certainly for companies and exports probably grow. We think they would.

And ultimately, probably over time, it likely means that you're going to try to boost up to some degree of capacity as well but it's my understanding and consensus that this may very well be the last pipeline of this magnitude, aside from feeder pipelines, that is going to be built so a positive impact but I wouldn't say transformational for the industry, no.

>> Interesting stuff. We'll get back to your questions for Bart Melek on commodities in just a moment's time.

As always, make sure you do your own research before making any investment decisions.

And a reminder that you can get in touch with us at any time. Do you have a question about investing or what's driving the markets? Our guests are eager to hear what's on your mind, so send us your questions.

There are two ways you can get in touch with us.

You can send us an email anytime at moneytalklive@td.com or you can use the question box right below the screen here on WebBroker. Just write in your question and hit send.

We'll see if one of our guests can get you the answer right here at MoneyTalk Live.

Interest rates, of course, have remained elevated perhaps longer than many investors were anticipating.

This has weighed on several areas of the market, including real estate stocks but we have signs of Canadian economic slowing growth, the marketing said the first Bank of Canada rate hike, cut, of course, would come in June.

So what does that mean for real estate? Time to take a look. Anthony Okolie has been looking at a TD Cowen report.

>> We are in the midst of quarterly earnings in the REIT sector and TD Cowen has later to report that previous what to expect.

I will start off with their forecast and some of the key themes they are seeing play out across the sector.

They are forecasting 6.4% adjusted funds from operations unit growth in the first quarter.

That's higher than just over 5% in the same quarter last year and it's the highest since the 7.6% growth we saw back in the second quarter of 2021.

With rate cut expectations being pushed out, TD Cowen sees some modest downward pressure on consensus estimates despite the strong fundamentals that they are seeing in both sectors. However, TD Cowen says that recent acquisition activity and asset sales appear to be picking up. That could be a potential catalyst for the sector especially as we approach the start of the rate cut cycle.

That being said, TD Cowen expects seniors to lead growth. In seniors, they expect adjusted funds from operations and growth at 44% year-over-year. They expect solid industrial fundamentals driving retirement home developments and higher rents.

In residential, there is 13% year-over-year growth.

Regarding temperatures, that's a driver for the easing of cost pressures. Taking a look at industrials, they expect it to be driven by year-over-year rent growth with the sector benefiting from low capital expenditures and higher operating margin.

Although Canadian industrial fundamentals moderated in the first quarter of this year with national vacancies rising, the pace of increase has begun to slow according to TD Cowen and they see in improving trend over the coming year as construction activity continues to slow and the space demand growth resumes.

They also mentioned office REITs in the office sector.

They remain cautious on the near-term outlook but they believe that the downside risks are generally reflected in the current REIT trading valuations.

>> That's where they think things could be headed. What about the risks?

>> There are always risks. I will start with the seniors.

Some potential risks there, illness, fires at multiple residences, tenant liabilities, in the industrial, some key risks include general economic conditions, demand for space, key management. Retail and residential, similar risks include interest rate fluctuations, slowing rent growth and higher vacancies, as well as local real estate markets and in office REITs, geographic concentration provide some risks as well as real estate market supply and demand for office space as well.

>> Interesting stuff. Thanks, Anthony.

>> My pleasure.

>> MoneyTalk's Anthony Okolie.

And now for an update on the markets.

We are having a look at TD's Advanced Dashboard, a platform designed for active traders available through TD Direct Investing.

This is the heat map function, gives us a nice view of the market movers. Let's start with the TSX 60. What's happening today? We are talking commodities on the show. Let's start with the materials bucket. Kinross is that more than 4%, Nutrien is up more than 4%. I screen on the screen there. Energy space, Suncor seems to be the clear leader today, up a little more than 2%. We mention Manulife earlier in the show.

The street seems please, the stock is up 4%.

South of the border, we are in the thick of earnings season.

There have been some disappointments but also a lot of interest in what's happening in the US labour market.

We are seeing further softening. It's a mixed picture here today. Amazon is up about 1.5%, a little bit of weakness in Tesla and Nvidia.

Back now with Bart Melek from TD Securities, talking commodities. Someone wants to talk about LNG. Why does Canada continue to stay out of the overseas LNG market?

It seems like such a missed opportunity.

>> Well, it certainly a bit of a mess relative to the United States which has really capitalize on that. We have had of course the war in Ukraine where Russia invaded the country. There were sanctions. LNG was in high demand. Canada unfortunately did not participate.

Recently, we had leaders from several European countries who all said they would be willing buyers. I have no idea what happens next. My view is that Canada definitely should participate in the global LNG market.

We have the product, we have availability underground that we certainly can develop and I think it would be very accretive for Canadians but importantly, it's a way to reduce global omissions where potentially you would have a situation where omissions in Canada who go up because of production but if you export those to let's say Chinese or Indian users who now burn coal which is, has constituents of silver and CO2, and substitute it with much cleaner LNG, there would be aggregate global benefits, so I think it's a very good way to reduce greenhouse admissions by using LNG as opposed to coal to generate electricity, for example.

It's not the long-term solution that gets us to net zero, but I think given the reality of how things are, the timelines of building grids and transmission lines, zero missions, wind and solar which are going to need stable grades, that would be very much a good midterm, medium-term solution to get us along a lower emissions trajectory, a good start. I definitely think Canada should. Whether or not we will, I don't know.

>> Always great to have you here. We have run out of time for questions but a final thought about where we are right now in the commodity space. What is top of mind for you?

>> Top of mind is gold and silver.

Silver we didn't talk much about today but it is one of my favourite metals which is one that should benefit from lower rates from the Federal Reserve. It is very much correlated to gold, as gold does well, silver should do better.

For every 1% change in price of gold, silver will typically historically due to. I think we have the potential longer-term that it materially outperforms gold of the next year or two. Reason being is I think a structural deficit over the next three years and it is a battle that is essential in reducing the global CO2 footprint. Why?

Well, it is very much used in electronics that are needed to have these smart grids and, of course, battery-powered vehicles. There are a lot more electronics in an EV and the includes a hybrid, then there is in a standard ice vehicle, upwards of 2 ounces per vehicle. If you consider that there are well over 100 million vehicles being produced, once you get meaningfully into that market, that market penetration of the new car market, that is, those are serious numbers.

Of course, there is solar, solar panels have a very significant loading of silver and new technology has even more loading than the old technology for solar panels. As we move forward, silver is going to be in high demand.

There's really not much in terms of primary investment relative to what is going to be a strong demand.

So I like silver because it is a green metal entities, I think, going to be in short supply for the long term.

>> Intriguing final thought from Bart Melek. Always a pleasure to have you and I look forward to the next time.

>> Wonderful to be here.

>> Our thanks to Bart Melek, global head of commodity strategy at TD Securities.

As always, make sure you do your own research before making any investment decisions.

be sure to stay tuned for tomorrow show. We'll have an update on the latest Canadian Jobs Report of what it could mean for interest rates and that's fascinating stuff, we will also get an outlet for the biotech sector with John Hall, investment analyst for US equity is from T. Rowe Price, and the Okolie spoke with him.

Thanks for watching and will see you tomorrow.

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