Experts: Smart Investing in a Volatile Resource Market
The resource sector has never been easy for investors. Commodity markets are traditionally volatile and cyclical.
More recently, the waters have been further muddied by the push and pull of government policies, significant supply chain disruptions, bifurcated markets and AI-derived strategies.
Given the challenging landscape, how can investors reduce risk and make the best decisions for their portfolios?
At this year’s Rule Symposium in Boca Raton in early July, a panel with Prinsights Founder and Economist Nomi Prins, Chairman and CEO of Adrian Day Asset Management Adrian Day, Thoughtful Money Founder and CEO Adam Taggart, Luma Financial Founder and Co-Founder of Rule Classroom Albert Lu, and “Things That Make You Go Hmmm” Author Grant Williams discussed how investors can manage the turbulence of today’s global macro economic landscape.
What is the current macroeconomic environment?
Right now, the resource sector is facing conflicts within the global economic environment.
When it comes to supply and demand, copper and many critical minerals have strong tailwinds due to the energy transition and the boom in AI and data center rollouts. This is further supported by stagnating mining output, which is sending supply shocks throughout the sector.
Supply and demand are just one part of the equation. Geopolitics now heavily dictates how resources are extracted, secured, and, increasingly, how projects are funded.
Governments, particularly in the West, have been caught off guard by the East’s dominance in critical mineral supply chains. It’s caused considerable consternation among leaders, who are now trying to adjust policy to stimulate domestic and allied infrastructure and projects to support national security.
The fears and anxieties have led to greater resource nationalism in both Canada and the United States, where governments have increasingly sought equity stakes in resource projects to derisk development and secure long-term commitments.
Likewise, the last few years have opened investors’ eyes to how conflict can disrupt the flow of goods, most notably the US-led war against Iran that began in February 2026.
The closure of the vital shipping lanes out of the Middle East sent shockwaves through energy and metals markets, further driving costs in an already persistently high inflationary environment.
Investors need to cut through the noise
Adding to a complex investment landscape is how investor strategy has shifted to more immediacy, driven a bit by a fear of missing out. It’s easy to see headlines about a stock or sector catching fire, such as the current AI trend.
Investors have embraced headlines, but as Nomi Prins pointed out, a reliance on headlines isn’t really a smart approach to building a portfolio.
“You really have to look at being an investor instead of being a short-term trader if you want to make real…
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