Sector Investing

[Tim Lamb]

RTS:

Commodity bulls run for a long time BUT they can all correct 50% of the move at some point. Demand has been driving this and they are priced at the margin so a drop in demand would drive a correction.

Consider it takes 7 to 10 years to bring a copper mine into operation. This is after discovery (I assume similar to other metals), permitting, site work, leaching, mill, road, power, etc. it takes a while to bring on new supply.

Does gold correct 50% of the move from $300 to 900 or back to 600. I think from TA gold still moves higher until the markets precieve the rate cuts are ending.

You just can't invest in politically unstable areas.