Bipolar Base Metals

From the HRA Journal Issue 301,
February 27, 2019

Wall St continues to bask in the love of the FOMC, with lots of soothing comments to warm the cockles of trader's hearts and bring on the bids.

I've still got some real concerns about the US economy as the year wears on, but maybe all this stock market joy turns things around. Some rapidly deteriorating economic readings will need continued attention though.

...Chicken, Egg, Chicken...

From the HRA Journal Issue 298,
January 9, 2019

This issue contains the first part of my start of the year editorial, focused on the equity markets, with a gold kicker at the end. Wall St, barely, avoided falling into a bear market late last month. I don't think we'll get through 2019 without a drop into Bear Market territory getting completed. I'm still not sure whether that will happen early or late in the year, though bear markets that start in Q1 are admittedly pretty rare.

 

Wall Street's Bitch?

From the HRA Journal Issue 299-300,
February 6, 2019

After weeks of slow news flow, we got the deluge around MIF and Roundup, with several companies on the HRA list putting out major news.

Dealing with that held up the issue a bit. It's not a double issue because it's a bit late. It's a double because all the long updates and addition of a new gold explorer to the HRA Journal list means its long. 40 pages long to be exact.

HRA is your key to uncovering and profiting from extraordinary resource shares by getting ahead of the crowd.

HRA looks for resource companies with the potential to at least double over one year based on asset or reserve growth through development of metals deposits for production or take over by larger companies. HRA also uncovers high risk/high potential exploration plays, the kind of "swing for the fences" trade that can yield returns of hundreds or even thousands of percent. You choose your comfort zone and which type of company you want to follow. Click here to view HRA’s impressive track record and you’ll understand why we believe that resource stocks should be in every portfolio.

But Aren't Commodities Dead?

No. Metals are basic necessities of modern life and the per capita use of metals rises with income levels. In the past decade several of the world's most populous countries underwent accelerated growth. While countries like China, India and Brazil are currently being impacted by recessionary forces, the changes that spurred their stronger growth are not cyclical. These secular changes occur as per capita income reaches levels that require increased infrastructure spending by government and allow for discretionary spending on things like housing. All advanced economies have gone through these high growth secular periods in the past. The difference is that never in history have so many people in the world been entering the "lower middle class" at the same time. The impact on resource use from this massive change is just beginning to be felt. Remember too that there are several other high population countries like Malaysia, Turkey, Indonesia and Pakistan that are just entering this growth phase now. Collectively, these countries have a population roughly equal to China.

Historically, these sorts of Quality of Life cycles last a full generation or more. We are a bit over 10 years into this one. There will be cyclical slowdowns within the secular trend and individual metals will underperform or outperform depending on their particular supply/demand balance. The mining sector, which we have decades of experience in, will have to struggle just to keep up many times during this trend. Economies turn much faster than metals production. In short, there are more bull runs ahead for various metals and they will start much sooner than most people think. Metals producers and explorers will go from pariahs to market darlings and the change will happen fast when it comes. It has many times before. Buying low and selling high means seeking out the right companies before the market does. HRA can help you do just that.

Latest HRA Media

 

Vendetta Mining PEA

Long interview with Vendetta Mining CEO Mike Williams, after the release of the Pegmont PEA yesterday. A lot to cover. It's not short, so grab a coffee before you click play.

HRA Testimonials

HRA is great at getting the "real" story out on resource companies by doing their due diligence and keeping on top of maps, news releases and corporate development. I highly recommend HRA...to any investor whether it be an institutional client or private investor.