Strategic Global Partners says that, after a long period of underperformance, mining stocks are beginning to look particularly attractive.
Japan, March 5, 2014 - (PressReleasePoint) - According to Strategic Global Partners, mining stocks, the much-maligned asset class which failed to deliver consistently despite the performance of the underlying metals they produced are back under the gaze of investors looking for value in equity markets that remain expensive despite recent pullbacks.
According to commodity analysts at Tokyo-based boutique investment house, Strategic Global Partners the predominantly bad year for commodities in general and metals in particular has served to reset the ratio between metals and the stock values of the miners that produce them presenting a potentially lucrative opportunity for investors prepared to ignore negative sentiment towards metals like gold, iron and copper.
“Take gold for instance; the price has dropped to the point where it’s not very far off the actual cost of producing it. If, like us, you believe that the fallout from the financial and economic crises of the past 5 years have further to run, then getting into mining stocks at these low valuations makes a lot of sense,” said one of the Strategic Global Partners commodity analysts.
The firm says it believes that there may yet be another leg down for metals but that the lows reached should represent a baseline from which prices can consolidate before firm pushes higher during the course of 2014 and beyond.
“We would be very surprised indeed if gold didn’t end this year at close to or even beyond $1400 so mining stocks really do represent a good investment for those prepared to take a higher risk view said the Strategic Global Partners analyst.
The firm says it has buy recommendations on Newmont Mining.
About Strategic Global Partners
At Strategic Global Partners we work in conjunction with international private, corporate and institutional investors to provide them with comprehensive financial services, including portfolio management, investment research and trading facilities.
As your strategic advisor, it is our job to identify profitable investment opportunities while concurrently mitigating any risks, as we look to add value to your portfolio and make it more resilient against market volatility.
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