Markets remain unsettled after Washington reignited trade tensions with Beijing, sending rare earth and copper stocks higher and sparking new volatility. The resource rally comes as investors brace for earnings season and assess whether the AI boom is losing momentum.
BNN Bloomberg spoke with Bruce Campbell, president and portfolio manager at StoneCastle Investment Management, about the impact of tariff threats on Canadian markets, what’s driving the surge in resource stocks and how investors are positioning for shifting sentiment.
Key Takeaways
- Renewed U.S.-China tariff tensions reignited volatility across global markets.
- Rare earth and copper stocks rallied sharply, especially U.S.-based producers.
- AI stocks remain a key focus heading into earnings, though valuations look stretched.
- Canadian banks and energy names continue to show strength, supported by better capital discipline.
- Credit market stress in the U.S. has revived concerns reminiscent of 2008.
Read the full transcript below:
ANDREW: U.S. President Donald Trump says he’s ready to impose 100 per cent tariffs on Chinese imports. Beijing is vowing to “fight to the end.” With this latest escalation in the trade war between the world’s two largest economies, what does it mean for Canadian markets? Let’s bring in Bruce Campbell, president and portfolio manager at StoneCastle Investment Management. Bruce, it’s incredible. Can we start off with the material stocks — rare earth stocks are on fire today, especially those with the prospect of producing within the U.S.?
BRUCE: Yeah, even over the last three or four trading sessions, any U.S. stocks with domestic rare earth properties have really moved. Some of them have jumped significantly.
ANDREW: And copper as well — maybe we can put up a graph of the copper price. If you’re Ivanhoe Electric, with the prospect of producing copper in the U.S., and they say they’ve got new technology to do it — look at that — copper above US$5 a pound. Not much movement today, but still above US$5.
BRUCE: The copper price has bounced, and now we’re seeing follow-through in the copper stocks too. The rallies in rare earths and precious metals seem to be extending into copper names as well.
ANDREW: BHP CEO Mike Henry, who’s Canadian, says the mining giant may resurrect shuttered mines in the historic U.S. copper belt in Arizona — the Globe-Miami region. They’ve got four old mines there, closed decades ago, but there’s renewed interest in domestically produced copper.
BRUCE: Yeah, between the domestic supply angle and higher commodity prices, those previously unprofitable mines are now viable again. Even if the highest grades have been mined out, they can still turn a profit at current prices.
ANDREW: Let’s take a look at Hudbay Minerals — that stock is climbing too, hitting its highest level in at least a year. They’re also working on a project in Arizona.
BRUCE: Yeah, there’s been plenty of action in copper and rare earth stocks. And that builds on the strength we’ve already seen in precious metals, which you talked about earlier.
ANDREW: Broadly, how do you see the markets right now, Bruce? Is the AI trade showing signs of age?
BRUCE: It’s certainly had a big run. Investors will be watching closely as we head into earnings season to see how AI-related companies are performing and whether demand is still ramping up. The other thing to watch is capital spending from the hyperscalers — whether they’ll keep investing, which drives the companies that make chips and equipment. That’s part of why Nvidia is now the most valuable company in the world.
ANDREW: Do you think investors might eventually get wary? They’ve poured tens or even hundreds of billions into data centres — maybe the payoff won’t be as big as hoped.
BRUCE: Yeah, we’ve seen this movie before. When valuations expand too far and earnings growth starts to flatten, investors begin to question the multiples they’re paying. Growth may continue at a steadier, more linear pace, but not at the same accelerated rate. When that happens, multiples compress and those stocks fade. It’s hard to say when that happens this time — there’s so much focus on AI — but at some point, the momentum will slow.
ANDREW: What about the Canadian market beyond the resource stocks? Are you seeing opportunities there?
BRUCE: Over the past year, banks have done really well, which reflects the broader economy. Some commodity names have also held up. Energy stocks, in particular, have performed solidly — not because of higher oil prices, but because companies are managing capital better, spending less and returning more to shareholders. Even with flat oil prices, those names have generated good returns. If we saw a global economic expansion and a stronger energy market, the TSX could move even higher.
ANDREW: Although, as you know, oil has dipped below US$60 this week.
BRUCE: Yeah, and there are tankers sitting offshore full of oil with nowhere to go. It doesn’t look like oil prices will surge anytime soon.
ANDREW: One more concern today — the credit market, especially subprime and private lending in the U.S. We’ve seen some bankruptcies tied to the auto sector, and at least one involved a company active in private lending. Some reports suggest this has revived fears reminiscent of 2008.
BRUCE: Everyone has scars from 2008. Anytime credit spreads widen or option-adjusted spreads tick up, people start worrying about another credit event. Few saw the 2008 crisis coming, and now everyone’s on alert for the next one. Maybe that vigilance will help prevent it, but it’s something to watch. The saying goes that credit markets are smarter than equity markets, and there are definitely some signs of concern showing up there now.
ANDREW: Bruce, always great hearing from you. Thanks very much.
BRUCE: Thanks for having me.
ANDREW: Bruce Campbell, president and portfolio manager at StoneCastle Investment Management.
This BNN Bloomberg summary and transcript of the Oct. 14, 2025 interview with Bruce Campbell are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards