Mackenzie Resource Team sees investor opportunities in the shift from inefficient, polluting resources to sustainables. Climate change is forcing leading economies to make big decisions that could have a historic impact on resource sectors.
In today’s challenging environment for global commodity prices, conventional valuation measures may not be the most effective in selecting resource stocks. In this paper, we examine the application of sustainable Free Cash Flow analysis for companies with high capital intensity.
September 1, 2015
Synchronized global growth persisted through the first quarter of 2018 despite some moderation in growth rates from elevated levels in late-2017.
Synchronized global economic growth firmed through all four quarters of 2017. We believe growth could accelerate in 2018 to nominal growth rates not seen since the 2000s.
The number of countries now participating in the current global economic expansion reached levels last seen in the mid-2000s. With such breadth, the global economy is now lifting PMI and other leading indicators higher, confirming the early sign that the global economy has reached a point where growing capital expenditures can be sustained.
Inventories are continuously drawn down across the full commodity complex. We believe that any potential supply constraints, even at the margin, will put upward pressure on prices.