Consider Possible Positives, As Well As Possible Negatives

By: Ian Campbell | Wed, Jul 18, 2012
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Mainstream and Internet media sources are increasingly, or so it seems, addressing near-term (and perhaps longer-term) problems and prospects faced by resource explorers, developers and producers in circumstances of:

While these things ought not to be discounted at the broad resources companies level, consider what may prove to be the 'flip side' of that negativity, which at a macro level arguably is aimed largely at base metals producers:

the 'best of breed' gold explorers, developers and producers may well reward their respective shareholders in what may prove to be 'bad economic times', particularly where those shareholders exhibit patience and hold their positions as investments, and not as trades - where a good investment result likely would be longer than shorter term in nature.

That said, carefully consider the view expressed in the previous paragraph in the following contexts:

first, as a general observation, commentators and 'stock pundits' often fail to reference overall financial markets conditions and directions when recommending specific companies and investments, as trades, or as both. Importantly, they often seem to make a general unstated assumption that the financial markets are not going to generally go up or down over time as in world and country specific economic conditions change. If you agree with this observation, consider its implications carefully, and carefully consider when making your investment and trading decisions what you think will be the likely near-term direction of the financial markets.

Remember that a commentator could be exactly right with respect to the underlying 'positive attributes' of a particular company, but those 'correct thoughts' could well lead to investment or trading losses if the overall financial markets drop in the near term following a specific company recommendation; and,

Accordingly, if you are an investor and make 'investments' in today's financial markets environment, be prepared to accept what might be serious ups and downs in the price of a given security through your 'hold period'.

Consider also that:

Topical Reference: Little left to stoke mining stocks, from The Globe and Mail, Kevin Allison, July 16, 2012 - reading time 2 minutes; and Gold mines face radical downsizing, from Miningmx, David McKay, July 16, 2012 - reading time 3 minutes.

 


 

Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Economic Straight Talk

Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
* Canadian Institute of Chartered Business Valuators
** through The Ian R. Campbell Research Initiative

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/