LCACM

How Low Can Mining Stocks Go?

China and India each have a population of over a billion, so the demand for commodities from these two countries will continue. Per capital consumption in these 2 countries is minimal and has room only to go up and not down. This will put upward pressure on the commodities in the next 5 years, inspite of the current crisis. Also the Central government in India has recently announced steep wage hikes as a result of the 6th Pay Commission. This will create confidence and a definite boost in commodity demand, in the next 12 months or so. So this is probably a great time to buy at these firesale prices.