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Tuesday, Aug 20
Miners at 30-year lows could bounce as interest rates rise
- Most global miners are in correction territory but earnings have not been hit to the same extent as share prices, making mining stocks a compelling buy, according to Matterley Asset Management's Henry Dixon, who thinks the sector will be the first to benefit from rising bond yields.
- Rio Tinto (RIO) is Dixon's pick among global miners, as it has committed to trimming its capex by ~$5B over the next two years after a decade of overspending.
- Allianz Global's Neil Dwane also backs mining stocks to perform well when the Fed starts tapering, as many miners are lightly leveraged and so will be hit less by rising rates.