Miners who control costs, even more so than increasing production, are the ones who will do well in this current cycle, especially with China’s expected slowdown. Our favorite of the bunch remains a key Wealth Builders Portfolio member.
At the end of the day, cryptocurrencies are all about the technology and science involved, which needs to be respected. But when it comes to bitcoin, people will realize that there are few people who actually spend them, meaning it won’t become the payment system its creator envisaged.
With the market bull running since 2009, investors should start adding gold to their portfolios. Keep in mind that gold gains in value during times of geopolitical uncertainty, when investors worry about monetary issues or when the stock market experiences a sharp selloff.
On a price to book metric, the energy sector trades at a 50 percent discount to its 20-year average. That makes it the cheapest sector in the emerging markets universe. Our favorite company fits well with our Asia-focused investment thesis and current geopolitical trends.
Investment correlations that favored passive investment strategies are likely to break down while the bull market nears its end, favoring strong pickers. Look to emerging markets for some of the best opportunities.
The current policies of the ECB were designed to fight deflation and financial fragmentation in the eurozone. Currently, though, stronger economic activity, easier access to credit, lower borrowing rates and weakening deflation pressures open the door for tightening, even if only gradual in nature.
For some time, mining companies thought diversifying their portfolios was the best way to improve cash flow stability and protect themselves from natural resources cycles and increased volatility. That hasn’t worked, at least not as expected.
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