MarkMedayski

Bear Comparison: Today's Junior Resource Sector vs. 2001's Nasdaq

Super research,only the difference between Nasdaq and Junior mining stocks is their shareholders.It is easier for big cap stock to rebound and that doesn't have to be because of valuations change,it's how big markets operate.There is psychology that says that big stocks are here forever so nobody cares,if it looks cheap it must be cheap,people are less concerned as media give so much info on big names and they have serious shareholders like biggest mutual funds,pension funds so small investor says I want to be where Calpers on Fidelity,Vanguard is.The only mistake is to think that big investors don't make mistakes,the opposite.
Now regarding small cap resources stocks,do they have real profits regarding their market cap,I have checked few and 90% at least are losing money on their expenditures for many years already,so the question is:Why somebody must support other persons ( company's )
losses.The answer will be same in every case: My stock is the best positioned to capitalize on rising price of Gold,Silver,Uranium,Co... etc.,I don't believe the answer will be different.
So was it worth to hold those small caps or microcaps last few years when prices of commodities increased and many of average investors mining stocks are down well below 40-50%.
Results tell for themselves,it was not worth.
Conclusion:
Almost everybody of investors would make much,much better buying gold coins,platinum bars,big cap mining/oil/gs stocks as many of those seen quantiple in their stock prices for the last few years,and if you take 10 years then one can retire being bought into any mid/big cap resources stock.
Advice:
Keep your small caps,as it have no sense to sell the loser now,especially if we are still very far away from the peak in oil/gas/gold/silver/pa... but then don't make a mistake selling it too cheap.As in every bubble before the crash,such small caps will rise many times over their proven/probable reserves.
So in the end all of you will be lucky and it have nothingto do with valuations as valuations are down 50% ans stocks are losing money.
I do the same as small cap investor,only I trade commodities on short term basis so my profit will not be so big but the losses too.
Good luck,let your loser fly!

Is the Commodities Bull Market Over?

I didn't read it but it must be you are bullish commodities,I am too only with one difference,I differentiate between them.If for example Lumber,Sugar,Ol,Gas,Co... is cheap,it doesn't mean that Platinum (who needs it anyway) can not go down another 50% or gold another 30%.What's the problem?
Before one invest in hard assets,make your research what each commodity means and where it stands in the crowd as all can not go only up.

Commodities Still Well Shy of 2006 Correction

In the last big CRB Index rally that started in the early 1970's index increased 70% in 8-9 years.
Now we are in the increase that started in 2001 that took CRB Index up 300%.
The time frame is the same if one considers we are on the top and are headed for big fall.Maybe.
But I belong to realists camp and can somebody of you count how many barrels of oil,natural gas equivalent,tons of coal,copper, metric meters of lumber,tons of aluminium,gold,platinu... etc., we have consumed since last CRB Index rally ended in 1980.
Do we have more available resources today or all of them become more depleted and where we will get new ones?
The planet earth is not a magic ball and can not give more than it has.In this perspective we are on the fair valuations for all of the CRB Index components.
Looking at Fibonacci ascending numbers I found number 610 (last CRB peak) followed by 987.
I believe we are headed for another decade of increasing CRB at least till 987 and then who knows how many commodities will be available in the quantities we need.