bull market for commodity stocks
Before I write anything, I should write down about the comments from Ross Healy on ROBTV.
He mentioned that there are three steps for a sector heading to a bull market. First, it is disappointing. Everyone dislike this sector and every company in that sector. Second, it is the growth of book value. At this stage, no one will take notice on them because they have already delivered enough disappointment. I think it is the excellent opportunity to build the position. I think right now it is the end of second stage for the commodity stocks. Third, it is the stage to take off. I agree with David Prince and Don Coxe. This is a 15 years bull market for commodity stocks. The net increase demand for commodity from China, India and South America drives base metal and oil and gas stocks price.
Don also suggests that investing in dividend-paying stocks will be a good hedge strategy, because if we come into recession market, at least, it generates income for the investors. I sense that Don is predicting a long period of time recession, like Japan. Normally, he predicts 15 years for triple waterfall collapse. Japan is in 13th year. Hence, he recommends investing in long duration bonds or zero-coupon bonds as well as dividend growing faster than inflation such as Bank of America.
I believe it is a good strategy.
Come back to my recent performance. I have purchased suncor for Siang at $33.30. I was very lucky that after my purchase, stocks shot to $39.5 in one and half week. I currently use stop limit protection to limit the risk of sharply decline in one day.
I heavily invest in base metal and oil and gas stock. Encana is another one. I bought it at $64.60. It was close at $67.77 on Friday. It is going to ride because they are going to stock split in April 2005. That will be a good news for this stock price.
I continue to invest in those sectors. I have not found a good agriculture stock. I am interested in those stocks now.
PBR and SSL are very interesting stocks. I have watched them and will pull my trigger.
He mentioned that there are three steps for a sector heading to a bull market. First, it is disappointing. Everyone dislike this sector and every company in that sector. Second, it is the growth of book value. At this stage, no one will take notice on them because they have already delivered enough disappointment. I think it is the excellent opportunity to build the position. I think right now it is the end of second stage for the commodity stocks. Third, it is the stage to take off. I agree with David Prince and Don Coxe. This is a 15 years bull market for commodity stocks. The net increase demand for commodity from China, India and South America drives base metal and oil and gas stocks price.
Don also suggests that investing in dividend-paying stocks will be a good hedge strategy, because if we come into recession market, at least, it generates income for the investors. I sense that Don is predicting a long period of time recession, like Japan. Normally, he predicts 15 years for triple waterfall collapse. Japan is in 13th year. Hence, he recommends investing in long duration bonds or zero-coupon bonds as well as dividend growing faster than inflation such as Bank of America.
I believe it is a good strategy.
Come back to my recent performance. I have purchased suncor for Siang at $33.30. I was very lucky that after my purchase, stocks shot to $39.5 in one and half week. I currently use stop limit protection to limit the risk of sharply decline in one day.
I heavily invest in base metal and oil and gas stock. Encana is another one. I bought it at $64.60. It was close at $67.77 on Friday. It is going to ride because they are going to stock split in April 2005. That will be a good news for this stock price.
I continue to invest in those sectors. I have not found a good agriculture stock. I am interested in those stocks now.
PBR and SSL are very interesting stocks. I have watched them and will pull my trigger.
posted by bcebitda | 4:01 PM
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