Your correct. As the economy improves demand for copper inevitably will rise. But the first to see gains will be those already in production. I suggested that some time ago when I brought attention to Copper Mountain mining when it was in the 80/90 cent bracket. Copper has had a nice rise off the bottom already and current producers shares are closely tied to it's price.
The other thing is Teck already has development projects in progress. And now that Fort Hills is pretty well done, and Oil (Energy) is rising like it always does in any robust bull market. Teck is eying their frontier project. When machinery moves it takes fuel . Why Trump OKd the Keystone and is opening up the protected Alaskan drilling refuge.
A long known fact is. Historically in any rising economy, Financing at the bottom, Technology to make things more efficient, Then Industrials lead the way in creating jobs, Machinery orders explode in anticipation of infrastructure projects. (Look at CAT ) Income from that initial move spills over spent on Housing, Vacations, Non essential ect. Increasing demand for new resources as current ones get depleted comes near the top. (Last before the crash) Remember the Galore shutdown ? Total Hype and fire one day, then curtailed the next. It was also the peak of CUU ?
If we are at the new project takeout stage, it is at the earliest point. However if the Republican Tax bill gets assent as it is likely to do things could change very rapidly.
Then comes inflation from the boom and Gold comes into play as a protection hedge. As the bull fades money moves to health & Utilities which is the most stable sectors and does not fall as dramatically because they are a demand or necessary service modern civilization cannot do without. People still get sick, Garbage and sewer projects have to be attended to.
During down markets cosmetics like Avon, Max Factor and other like companies flourish somewhat. Women who most times run the household finances curb their spending. But still tend to reward themselves with minor feel & look good things like makeup ect. In doing so it also tends to relieve some of the husband's stress as it raises his admiration about her appearance. Then it begins another cycle in Finance, A new group of get rich investors who believe this time it will never end just like the ones before. These are cycles that have repeated themselves since the stock market began.
In my previous comment I did not mean to be totally negative. But rather intended to highlight the fact that in my opinion E/S does not hold the interests of common retail shareholders in high regard. And it is not the first occurrence where either information on suggested time lines or important details such as filing dates which happened at Carmax were not from My point of view properly handled. Cheers. |
