Maybe a little late, eh?
Posted on 08/16/2015 8:44:53 AM PDT by blam
Michelle Dunstan and Henry S. D'Auria
August. 16, 2015
Commodities haven’t been kind to investors in recent years. But we believe that shifting the frame of reference away from underlying price trends of metals and raw materials can reveal surprising opportunities in select commodity stocks.
The MSCI ACWI Commodity Producers Index has declined by 28% from the beginning of 2013 to the end of July 2015. Nonenergy commodities have fared even worse—the MSCI World Metals and Mining Index has dropped nearly 50% over the same period. Prices have plummeted because of concerns about slowing Chinese demand, coupled with continued supply growth in many key commodities such as iron ore and coal.
Looking Beyond Commodity Prices
These supply and demand conditions are likely to persist for some time, in our view. Yet we believe that there are still investment opportunities to be found. The trick is to identify commodity-related companies that don’t rely on rising prices of the underlying commodity to grow their earnings.
(snip)
(Excerpt) Read more at businessinsider.com ...
Goldbug ping.
In the stagnant/declining economy currently dominant here and the decline in China, some producers in the metals sector will have to go offline before much improves.
Or you could short them!
Maybe a little late, eh?
With the collectivists going at full bore on the economy there’s more than enough room left to shrink on the economy. It’s like doing the limbo...how low can ya go?
Cheap oil and natural gas is dragging down all other commodities. Blame the fantastic production in the energy sector these days due to fracking, Saudis Arabia pumping all out and Iran about to vastly increase oil sales as the sanctions disappear. Coal is low too of course.
Australian coal production is unencumbered by leftist eco-scum like Obama so its a pure coal price. It is down from $125 in 2011 to $60 today
http://ycharts.com/indicators/australia_coal_price
So copper is half of it’s peak price and same for coal
Beijing is China’s capital so they want it clean as a showcase to foreigners and the Chinese plus all the Chinese Federal Gov’t workers there don’t want to breath in foul air and they have some clout. Neither do the top rulers of China. They all live and work in Beijing and close by
Nationwide I doubtful many Chinese coal fired plants will be shut down
blam - remember how we were going to run of oil, copper, etc?
This one’s fun:
http://nypost.com/2015/08/15/ignore-the-dire-warnings-about-our-lives-because-its-just-hysteria/
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.