Constructive Stock Strategies Drive Investors Toward Metals

Source: Mineweb.com  (10/5/07)

The large diversified resources stocks are attracting top dollar, based on expectations for price increases in seaborne iron ore, along with recent price moves in gold bullion, platinum, copper, lead, zinc, and even nickel.

The Bank Credit Analyst has found that global portfolio investment flows are continuing to flow towards those equities, commodities and currencies that are farthest from the US housing market, i.e. farthest away from the epicenter of global economic weakness.

As such, while the so-called "go global" theme may be a well-worn metric for some investors, it's a theme that continues to dominate. Emerging market equities, on indices maintained by Morgan Stanley Capital International, and others, continue to hit new highs. Seen beyond short-term gyrations, the dollar continues its steady downtrend, confirming an ongoing protracted bear market that's been in place since late 2001...

Within the global resources sector, however, stock price performance has varied widely. Large diversified resources stocks ...currently rank as the world's top performing class of stocks, followed by oil and gas, and Tier I gold stocks. The large diversified resources stocks are attracting top dollar, based on expectations for price increases in seaborne iron ore, along with recent price moves in gold bullion, platinum, copper, lead, zinc, and even nickel.

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