Rick Rule perceives a significant market dislocation as the GDXJ Junior Miners ETF enters an unusual rebalancing exercise.
The GDXJ Junior Miners ETF has outgrown its market says Rick Rule, the CEO of Sprott US Holdings, who believes the ensuing rebalancing exercise will create imbalances in the cost of capital for these small firms which, in turn, may create significant arbitrage opportunities for investors.
[00:03] Remember who the boss is.
[01:00] What’s happening with the GDXJ ETF? What arbitrage opportunities do you see?
[06:30] What are GDXJ holders really holding?
[09:23] Has this been fully priced in?
[12:58] This is a catalyst for individual companies to align to the new cost of capital
[15:59] The money is chasing volatility not opportunity
[17:37] Will there be more or fewer miners as a result of this development?
[19:25] Don’t miss Rick’s seminar on the rebalancing in Vancouver http://sprottconference.com
About the guest
Mr. Rule has dedicated his entire adult life to many aspects of natural resource securities investing. In addition to the knowledge and experience gained in a long and focused career, he has a worldwide network of contacts in the natural resource and finance worlds. As Director, President, and Chief Executive Officer of Sprott US Holdings, Inc., Mr. Rule leads a highly skilled team of earth science and finance professionals who enjoy a worldwide reputation for resource investment management.
Mr. Rule is a frequent speaker at industry conferences, and is interviewed for numerous radio, television, print and online media outlets concerning natural resource investment and industry topics. He is frequently quoted and referred by prominent natural resource oriented newsletters and advisories. Mr. Rule and his team have long experience in many resource sectors including agriculture, alternative energy, forestry, oil and gas, mining and water. Mr. Rule is particularly active in private placement markets, having originated and participated in hundreds of debt and equity transactions with private, pre-public and public companies.
Sprott US Holdings, Inc. is a holding company made up of three separate and distinct companies: Sprott Global Resource Investments, Ltd., a FINRA Registered Broker/Dealer; Sprott Asset Management USA Inc., an SEC Registered Investment Adviser offering managed accounts; and Resource Capital Investment Corporation, an SEC Registered Investment Adviser managing partnerships. These three companies make up the US Subsidiaries of Sprott Inc. and are active in securities brokerage, segregated account money management and investment partnership management involving both equity and debt instruments, across the entire spectrum of the natural resource industry.
Contact him via:
Web at http://sprottUSA.com
About the host: Albert Lu is the President & CEO of Sprott US Media.
Contact him via:
Web at http://sprottmedia.com