Overall gold and silver mining stocks are now entering a key long term investment level, but don’t jump the gun and buy yet…
Knowing
that most of the largest moves based on percent happen during the last
10% of the trend, we must expect micro-cap stock prices will be
extremely volatile for many months. Another 30-60% hair cut could still
be ahead.
Canadian Equities Market:
The
TSX Composite is heavily resource-weighted and this market has lagged
its counterparts around the world in the last year. This year the
Canadian index played catch-up as seen in the chart below and was the
strongest index in 2014 until
this recent correction.
These
equities may hold up well when the US market starts to top/correct.
This is because the TSX’s is heavily weighted in late-cycle stocks
(resources), it’s not unusual for the Canadian market to lag in the
early stages of a bull market in the USA, catch up in the late stages,
and then outperform toward the end.
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Trading & Investing Conclusion:
In
short, I think 2015 will be the start of a new micro-cap stock bull
market. Sure it could take more than a year to base and start to rally,
but the time will come when ridiculous amounts of money will be made in
this corner of the market.
We
all hear stories about how a couple thousand dollars in a particular
stock would now be worth $250,000, $1,000,000 etc… well times like that
will happen again. But we must wait and watch for this perfect
storm to unfold.
Starting
in Dec/Jan I will start sharing my top 12 micro gold and silver stocks
along with my trades/positions in them as I take them.
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