Coppo: Resources are a BUY

Now this is important: watch very closely what happens to resources in the next 4 to 6 weeks. As mentioned yesterday, resources are due for a period of consolidation. I've been pushing resources for a while and just because they've had a good run doesn't mean it's time to abandon ship. Quite the opposite. It's time to build or add to resources. The yield trade has peaked and will deflate, and as it does, resources will be one of the big beneficiaries. A few brokers have gone to Sells on resource stocks and pretty much everyone agrees that after rallying +48% from their (way oversold) levels in February that they are due for a big selloff. But that assumes that “everyone” bought resources at their lows in February. Wrong. Most didn’t. I’ll tell you why they are a BUY, and why they are a two-year trade at least.