There is clear evidence that the highly cyclical mining sector is about to turn upwards

Fuller Treacy Money

There is clear evidence that the highly cyclical mining sector is about to turn upwards. We have seen it over and over. 1) As the global economy commences a recovery, miners are slow to increase supplies because metal prices are low. 2) Global GDP growth pushes up demand for metals and prices begin to rise. 3) Shortages appear as GDP growth continues so miners begin to increase supply against a background of high prices. 4) Central banks begin to tighten monetary policy and GDP growth starts to slow, lowering demand for metals but miners usually keep on producing because they have increased their output capability. 5) Recessions appear and metal prices slump on too much supply and falling demand. 6) Miners reduce supplies against a background of weak global GDP growth and low metal prices. 7) Central banks provide monetary stimulus. Where are we today? (VIEW LINK)

Fuller Treacy Money
Fuller Treacy Money

Fuller Treacy Money is one of the world's most highly regarded research services covering global strategy and investment trends. Produced by Global Strategists David Fuller and Eoin Treacy, Fuller Treacy Money analyses the major markets - stocks,...


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