Sunday, June 27, 2010

Can Mining Stocks Go Up (if the Stock Market Goes Down)?

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What a great question!  And the answer may surprise a few of my readers.
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The first chart is the SP-500 for the past 10 years.  This 'stock market' index is in a long term condition known as a secular bear market.  Experts all agree to this as a fact.  And over time, bear markets do one thing very well - they go down, of course.
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Click on the chart to ENLARGE
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The largest miners are grouped as a sector and put into an index called the HUI.  
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Yes, miners are a part of the 'stock market'.  But no, they do not have to perform just like the bigger stock market.  
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In fact, they can do whatever they want.  
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And because miners are in a long term (secular) bull market, they do one thing over time very well - they go up, of course.
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Click on the chart to ENLARGE                                            

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