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The News Gets Worse, So We’re Buying Resource Stocks…
If you own resource stocks, you don’t need us to tell you it has been a torrid two years.
The gold price is 30% below the 2011 peak, and the S&P/ASX 300 Metals & Mining index has lost a whopping 40.6% since April 2011.
And with headlines in the press talking about the ‘Economy at a turning point’ and ‘Mining sentiment in free fall’, only a lunatic would even consider looking at mining stocks today.
That’s where we come in. This is exactly why we’ve just tipped three mining stocks in the past six weeks.
As a contrarian investor, those are exactly the headlines to give us confidence that a rebound in resource stocks is on the way…
But not everyone agrees with our view.
You can probably imagine that we’ve received plenty of mail from readers who think your editor is a traitor because we’re not calling for the market to crash.
The gist is they aren’t happy with our view that the Australian share market is heading towards a record high of 7,000 points in 2015.
These readers say we don’t understand that the world economy is stuffed and that we’re foolish for buying stocks when a crash is imminent.
All we say to those folks is that they don’t understand investing. The stock market doesn’t care what any one individual thinks. The market merely reflects the views of the investors who transact on any given day.
And right now, our view is that market sentiment is changing and resource stocks will be one of thebest opportunities through the rest of this year…
Read the rest of this article at Money Morning
