Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By Daily Wealth
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

A Multiyear Rally in Mining Stocks Could Be Starting Now

Tuesday, January 12, 2016 6:03

% of readers think this story is Fact. Add your two cents.

When has a market bottomed? When is the right time to get in after a spectacular crash?

The short answer is that no one really knows…

Calling bottoms is hard. And doing it consistently is nearly impossible.

Just because something is down a lot doesn’t mean it’s set to rise today. But major crashes often DO lead to massive gains in the future. This is exactly what’s happening in the mining sector right now.

Mining stocks have crashed 64% in the past 18 months. We’ve only seen declines that extreme three other times since 1974. And each of those led to massive returns.

Let me explain…

As I said, mining stocks are down 64% in just 18 months. That’s according to Datastream’s World Mining Index, which includes big names like Rio Tinto, BHP Billiton, Glencore, Anglo American, and Vale.

Mining stocks have only crashed to a similar degree three other times over an 18-month period. The last occurrence was in 2009. Take a look…

Each arrow in the chart above represents a similar decline over an 18-month period. But none is as extreme as the 64% decline we have today.

This doesn’t mean a rally has to start right now. But these kinds of crashes set the stage for massive returns. The table below highlights the returns after each past occurrence shown in the chart above…

Date	18-Month Fall	3-Month Return	6-Month Return	1-Year Return	2-Year Return
9/30/1974	-58%	14.9%	35.2%	36.7%	67.4%
6/30/1982	-59%	16.3%	36.3%	62.4%	75.4%
1/30/2009	-62%	40.5%	95.8%	131.5%	163.8%
12/31/2015	-64%	–	–	–	–
Average	–	23.9%	55.8%	76.9%	102.2%

History shows that big gains are likely after extreme crashes. The average three-month return was 24%. And 77% gains were the average after one year. We’d be foolish to ignore this trend.

I’ve been buying mining stocks for my personal account. (I’m using trailing stops to protect my downside.) There’s no way of knowing if this is the exact bottom. But after a decline like this, the risk/reward opportunity looks good to me.

If you’re able to take a bit of risk today, consider buying mining stocks. The mining sector has absolutely crashed. And history says triple-digit returns are likely over the next couple of years. That’s enough to have me interested.

Good investing,

Steve

Source: http://www.stansberryresearch.com/dailywealth/3178/a-multiyear-rally-in-mining-stocks-could-be-starting-now

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,604,063,825
Stories:	8,152,065