Tariffs on precious metals could drive material prices higher, says G Squared's Victoria Greene

Market Overview & Outlook - Materials sector is viewed as a cyclical, economically sensitive area poised for growth, especially with the tax cut overhang resolved and reduced concerns about debt ceiling fights [2] - Despite emerging tariff headwinds, the materials sector is expected to benefit significantly, potentially leading to hoarding of metals [3] Investment Opportunities - While some copper stocks may be overpriced, there are still undervalued mining stocks available [4] - The potential for tariff-induced hoarding of metals like copper and iron ore could drive prices higher, benefiting miners [5] Company Specifics (Rio Tinto) - Rio Tinto (RIO) is favored due to its diversified metals and mining operations, global sales reach, and undervaluation relative to peers [6] - Rio Tinto has a significant opportunity with the Resolution copper mine in the United States, where they hold a 55% ownership stake in the joint venture, potentially becoming one of the first new copper mines in the US [7] - Rio Tinto is expected to benefit from higher metals prices, increased economic activity, and continued growth in China, currently trading at a price-to-earnings (PE) ratio of 10 [8]