What is resource nationalism?

Resource nationalism refers to the trend of countries asserting greater control over their natural resources for economic and strategic security. For investors, this means companies that control valuable resources in politically stable regions can benefit from increased demand and pricing power as nations prioritize secure supply chains over globalized ones.

Why does political stability matter for resource companies?

Political stability is crucial for resource companies because extraction and production operations require long-term investments and planning. Companies operating in unstable regions face risks of expropriation, changing regulations, trade restrictions, or even nationalization. Those in stable jurisdictions like the US, Canada, Australia, and Chile can operate with greater predictability and security.

What are rare earth elements and why are they important?

Rare earth elements are a group of 17 metallic elements with unique magnetic, luminescent, and electrical properties. Despite their name, most aren't actually rare but are difficult to extract economically. They're essential for many high-tech products including smartphones, wind turbines, electric vehicles, and defense systems. Their strategic importance has grown as these technologies become more widespread.

How does deglobalization affect resource companies?

Deglobalization, or the reduction in global economic integration, increases the value of domestically-controlled resources. As countries prioritize secure supply chains and reduce dependency on imports, companies that control critical resources in friendly jurisdictions become strategically more valuable. This shift can lead to premium valuations, favorable government policies, and stronger bargaining positions for these companies.

Why are water rights included in a resource portfolio?

Water is increasingly recognized as a critical finite resource, especially in regions facing scarcity due to population growth and climate change. Companies that control water rights and infrastructure have a strategic asset that's essential for agriculture, industry, and municipal use. As water scarcity intensifies, these rights typically become more valuable, particularly in high-growth areas with limited natural water supplies.

15 handpicked stocks

Resource Nationalism Portfolio

This carefully selected collection features companies with strategic control over essential, finite resources in politically stable regions. As global demand for critical materials grows, these stocks offer a powerful defense against international supply chain disruptions.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17