At the beginning of December, the Bloomberg Commodity Index reached a new low compared to the S&P (since 2010). Since the last bull market, commodities have never been so favorably valued compared to general equities. And in December, the MSCI World Metal and Mining Index was also at its lowest level since 2010. This could be the turning point.
This increases the chances of an absolute performance of the mining sector and favorable entry opportunities.
Mind you, these are probabilities, but there are several factors that put mining stocks and commodity investments in a favorable light.
In contrast to physical gold, mining stocks and commodities are not yet in a bull market.Indicators and developments suggest that mining stocks and commodities will outperform major equity indices over the next few years.
I also hold other ASX stocks and generally believe that 2025 will be an exciting year in this context. Perhaps the next few weeks will be ‘THE’ entry point of the decade in this context. Who knows. DYOR
AMI Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)