MINING SECTOR – FAINT HEART NEVER WON FAIR LADY!

Company 20/01/16 1/03/16 % increase
Anglo-American 221p 506p +129%
Glencore 71p 130p +83%
BHP Billiton 580p 751p +29%
Rio Tinto 1577p 1952p +24%
Antofagasta 346p 498p +44%
Vedanta Resources 212p 274p +29%
Randgold 4416 6445p +46%
Lonmin 38p 96p +152%

 

 

“WELL THEY SAY FAINT HEART NEVER WON FAIR LADY!”

 

If you had bought any of these mining stocks with any conviction when equity markets hit rock bottom on 20th January 2016, you would be very pleased with yourself or you could be described as brave but stupid. Finding the bottom of a cycle is never easy – just getting the trend right is exhilarating. Only a few had the appetite!  To those who did I doff my ‘titfer!’

 

There must be a terrible temptation to take profits at these levels, though it is as well to remember that this sector has been trashed to ribbons. Has China finished falling from grace from a growth perspective?  Could it bottom at this level for a few years? Interesting to note how well Randgold has done.  What a fabulous flight to quality!

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