Natural resources and commodities provide investors with a unique opportunity to benefit from the long-term appreciation of these assets. While global economic trends largely drive the performance of natural resources and commodities, these assets have historically outperformed traditional asset classes, such as stocks and bonds, during periods of inflation. 

In this episode, Rusty and Robyn talk with Shawn Reynolds, Portfolio Manager for the Natural Resources Equity Strategy at VanEck. Before VanEck, Shawn served as a board member of several private Latin American oil and gas exploration and production companies and an energy analyst at Petrie Parkman & Co., covering U.S. oil and gas exploration and production companies. At VanEck, Shawn oversees the Natural Resources Equity Investment Team, including asset allocation, company research, and security selection.

Shawn talks with Rusty and Robyn about all things natural resources. He takes a deep dive into various natural resource sectors such as energy, agriculture, and precious metals, how natural resources fit into investment portfolios in the current environment, and how they complement other assets.

Key Takeaways

• [03:02] - What drew Shawn to the energy industry.
• [04:18] - The role of a portfolio manager for an active natural resource equity strategy.
• [05:29] - VanEck's economic outlook.
• [07:24] - How VanEck views inflation.
• [11:07] - VanEck's take on a recession in 2023.
• [12:39] - How natural resource stocks will fit into portfolios in 2023.
• [13:58] - What is meant by natural resource stocks.
• [15:19] - Why natural resources are a great inflation hedge.
• [18:03] - Shawn's recommendations for natural resource allocation.
• [21:38] - How recession can impact natural resource stocks.
• [23:51] - Do natural resource stocks replace or complement other real assets?
• [25:11] - Why investors should consider an ETF for their natural resource exposure.
• [26:25] - The difference between VanEck Agribusiness ETF (MOO®) and YUMY VanEck Future of Food ETF.
• [28:14] - What investors need to know about gold mining ETFs.
• [30:57] - VanEck's other natural resource ETFs.
• [32:00] - Shawn's favorite investment.
• [33:39] - How Shawn maintains his physical and mental well-being to perform at a high level.
• [34:42] - The people Shawn is thankful for professionally.
• [35:32] - Shawn's recommendation for content.
• [37:11] - What Shawn thinks about infrastructure.

Quotes

[04:28] - "The active natural resource strategy looks at the whole natural resource space. It's trying to drive alpha from all the aspects that natural resources and the underpinning of the global economy provide." ~ Shawn Reynolds

[14:15] - "When we think about inflation protection and leverage to global growth, which we think resources are, they are undoubtedly traditional oil and gas, renewable energy and green energy, and metal in all its forms." ~ Shawn Reynolds

[15:29] - "The great thing about the natural resource is that it does what it is supposed to do when it is supposed to do it. In times of inflationary periods, natural resource equities outperform the rest of the market." ~ Shawn Reynolds

Links 

• VanEck
• Humble and Kind by Tim McGraw
• Goldman Sachs
• Credit Suisse 
• Petrie Partners
• MOO - VanEck Agribusiness ETF
• YUMY - VanEck Future of Food ETF
• Veriten

Connect with our hosts

• Rusty Vanneman
• Robyn Murray

Subscribe and stay in touch

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• Spotify
• Google Podcasts

2447-OPS-12/19/2022