Friday, June 6, 2014

What I learned about junior mining stocks could shock you

From January 2005 to May 2007, the Toronto Venture Exchange (TSX V) rose 254%. That’s a huge move higher for an index. The TSX V is the home to nearly all of North America’s junior mining stocks. So that steep climb includes the performance of the junior miners.
I believe we are in the early stage of a new bull market in junior mining stocks. In order to understand what we could see over the next few years, I’m going to take a closer look at what happened to those stocks from 2005 to 2007 on the way up and then from 2007 to 2008, when the whole thing collapsed.
The index, however, doesn’t tell the whole story. The mining stocks listed on the TSX V performed quite differently from the whole index, as you would expect. When we break out the individual performances, we see some important differences.  (more)

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