Mining Sector Ideas

[gfp927z]

Bigworld, >> miners <<

Since the mining stocks are part of the broader indexes, that also added some selling pressure. Rick Rule also points out that the miner's valuations depend a lot on the perceived durability of the higher bullion prices. The bullion price needs to stay up for a relatively long time for the miner's to really benefit. So if bullion soars but quickly crashes, that removes a key valuation support for mining companies. Rick Rule said that in Oct he moved some $$ from the junior miners into the larger 'best of best' miners, and also into physical.

Btw, I did some tweaking to the asset allocation today. Added modestly to the metals on the ETF side to 'average down', and also re-entered the S+P 500 with a 4% allocation. Relatively tiny, but will probably add more (up to 10%) if the market has another down leg. I also bulked up the Treasury bond ladder somewhat. It goes out to Oct 2028, so a 2 1/2 year ladder.

I just can't get too enthused about the stock market. We'll probably get a decent bounce after this war fades, but it's already thrown a serious wrench into the global economy. Usually an approaching election can mean a fairly buoyant stock market, but not if the monthly economic numbers are deteriorating a lot. We'll see what happens.

Trump has a strong incentive to wind down the war, so hopefully Bibi has had enough also. Those hypersonic missiles could be a great equalizer to actually bring some peace to the region. It's surprising the US fell so far behind in that technology.



---