Dear FutureMoneyTrends.com Member,
It is a rare event for me to buy any established mining company with an outlook longer than 1 or 2 years. The mining business is just horrible: capital intensive, in constant search for more resources, and once production begins you are depleting your resources.
The worst part… In the commodity business, these cycles where mining producers sell their minerals for less than the cost to produce them is normal. Not only are they selling off their precious resources, they aren’t even making money sometimes. These bottoms can also last for years.
Long-term, the large-cap miners have been some of the worst investments for the buy-and-hold investor. Despite gold going up 400% since the year 2000, the larger mining stocks like NEM and ABX trade for less than they did 20 years ago. This is why I honestly avoid these type of investments.
My focus is on the smaller junior exploration and development companies; ones with the potential to see 1,000%+ returns.
Right now, due to the severe bear market, these stocks today are hated. The producers are losing money, exploration has slowed, and many of these stocks are being delisted simply for not having the capital to comply with regulatory filings.
“The deals are out there and the smart money is getting excited.”
Rick Rule recently told me that he was thrilled that he was experiencing a bear market like this, which will likely be his last in a career that spans 4 decades!
Good news for investors and speculators, the bear market has been brutal for everyone. It’s good news because you don’t even have to buy a high risk exploration company to see big profits in this sector; even the highest quality micro-caps are trading at enormous discounts.
FutureMoneyTrends.com has identified the 3 most hated sectors:
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FMT Reminder: Always set a trailing stop; especially on your more volatile trades.