Eye of the Beholder

From the HRA Journal Issue 312,
November 29, 2019

How about that SPX eh? Ever since the start of October it seems Wall St can do no wrong. US metrics have improved some and impeachment is a non-event as the US Senate would never vote for it. Both of those things calmed traders. Calm enough that they suddenly don't seem concerned about the US-China trade deal. That's convenient, since it looks like that deal almost certainly won't happen now. A lot of traders are also bullish because...

Jay’s Got Your Back

From the HRA Journal Issue 311,
October 25, 2019

FOMO is back on Wall St, so are positive liquidity flows. Nothing else seems to matter much, as traders know Powell is going to give them the rate cut they want this week. The announcement will take some careful scripting, traders will be saying "what have you done for me lately?" about five minutes after the announcement. I really don't think the FOMC is in the mood to promise or imply more rate cuts, but they'll try not to be too obvious about that.

Conflicting Signals

From the HRA Journal Issue 310,
October 5, 2019

It's not getting any less weird out there, that's for sure. We saw continued deterioration in several US economic metrics, but some stabilization elsewhere. There was enough "bad news is good news if it keeps bond yields low" vibe to maintain the SPX near its highs. That's impressive given how much traders could worry about if they had a mind to.

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.

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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.

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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.