W.I.: I don't think the PM stocks will be hit nearly as hard as the general equity market. In the S&P 500 there is only one mining stock...Newmont Mining. Because we are still coming out of a 6 year bear market in PMs the valuations are still quite reasonable historically. The PM Mining stocks are a leveraged play on the price of the metals themselves. And in my view, and the view of many sector analysts, the PMs are still in the early stages of a massive rally. This is due to overwhelming world debt at every level, historically low interest rates brought down artificially by Central Bank asset buying, record topping P/E ratios on general equities, countries divesting from the US Dollar, Central Banks buying massive amounts of physical gold, and potential geo-political risks. Yet most investors have zero weighting of precious metals or the miners in their portfolios. Many 401K accounts don't even offer a Precious Metal Mining Fund like Schiffgold. Most investors look at their 401K results once everty 3 months when the reports come out and never think about the current level of risk. If they did they would be devoting a much larger allocation to Precious Metals and the miners than they are now. So I think that whatever the downside for the Miners will be when the overall market crashes, it will not be as steep or deep and thye sector will recover much quicker. And if the equity market crash is triggered by a geo-political event, a Dollar crisis or a prolonged period of Stagflation then the Miners might not fall at all. In these later scenarios the upside for the Miners would probably accelerate.
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