The Gold Report: Investing in mining equities is a cyclical play. Are we at a point in the cycle for investors to return to mining equities?
Jamie Mackie: I think the gold mining stocks are at or near
the bottom. Research from the Ned Davis Research Group shows that
pessimism is extremely high—typically an indication that we are close to
a bottom. From our perspective, that is the best time to position
yourself. Once the market begins to turn, it will happen rapidly.
Investors need to recognize value and get in reasonably early to avoid
paying up later.
I compare the situation to being at a huge party; the party being the
blue chip, dividend-paying sector. The party has been going on for
quite a while, and it is hard to leave the party and sit in a room all
alone. But that is what investors should do, spend time in the room
alone, waiting for others to join them.
TGR: From a wealth-building perspective, how do mining equities fit in a world that is deleveraging?
JM: Your choice of the word deleveraging is interesting because I would say the world as a whole is not deleveraging. (more)
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