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Investors did not read the memo

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November 13, 2007 – Comments (0)

Another post I was reading this morning, http://www.safehaven.com/article-8818.htm, posts graphs of Freeport McMorgan.  I love the way some writers express themselves,

"Investors are still acting as if the mushrooming credit crisis will not disrupt global growth to a significant extent. We say this because emerging market equities and the stocks of large commodity-producing companies are holding up reasonably well. For example, the following chart shows that the world's largest listed copper producer (FCX) remains near its all-time high. If you were looking only at FCX's chart you could be forgiven for concluding that copper must be well above its May-2006 high of $4, rather than threatening to break below its August-2007 low of $3. As we noted in a recent commentary, it's as if the industrial metals bull market ended but investors in large-cap mining stocks never received the memo. This is perhaps because investors have learned over the past few years that it is safe to buy every significant dip in these stocks."

Now take into consideration the devaluation of the US dollar... 

I just had a look at all of the recent ratings on FCX, all outperform. 

Check your in box people... 

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