A Passive Aggressive Market:

From the HRA Journal Issue 271,
June 30, 2017

I really hate sounding like the “boy who cried wolf” when it comes to major markets.  Nonetheless, I’m shocked at how little impact central bankers have had as they all started talking, planning or threatening tightening.  Traders on Wall St in particular seem completely unconcerned by these comments. Clearly, traders don’t believe central bank words will be followed by actions.  I’m afraid they may be wrong about that this time and we may see some wild swings when that sinks in.

 

 

It's Complicated:

From the HRA Journal Issue 272,
July 17, 2017​

Things changed a lot in the past two weeks. The US Fed’s promises to keep tightening financial conditions look a lot shakier than they did at the start of the month, thanks to a series of weak economic readings in the US.

I still think we need to be wary of central bankers but with bond yields softening again and plenty of money flows into the major markets things look less dangerous than they did in June. Not safe, mind you. 

 

 

 

Reporting Season:

From the HRA Journal Issue 273,
July 31, 2017

The trend to a weaker US Dollar and strengthening gold, and base metal, prices continues.  As I note in the main editorial, there are 2-3 data points dead ahead that should determine whether the oversold greenback gets a bounce.  I say “should” because the clown show in Washington keeps getting in the way of economic metrics, so who knows? 

 

 

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

 

Eric Coffin's latest video presentation titled "Shifting Perspectives Will Drive 2017 Markets" from the Metals Investor Forum 

                               January 2017

                      

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.