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.
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.
With this year’s fourth quarter around the corner, we maintain a positive view on the miners. The majority of our preferred global macro indicators are holding well, and the mining sector still trades at a deep discount to the market. Metal prices already show strength, suggesting corporate earnings should soon follow.
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.
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.
Skepticism toward central banks’ ability to stimulate the economy through extraordinary monetary policies has helped to inaugurate a new bull market for gold. We highlight one of our favorite mining stocks for aggressive investors.
Mining stocks have moved to a momentum-driven phase, a change that suggests it’s time to close positions and book profits. In the meantime, oil prices and global growth are two critical factors when considering new investments.
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