This Surprise Breakout Offers You a BIG Payday
While gold, silver and precious metals mining shares continue to move sideways into correction mode, other hard-asset commodity markets are heating up big-time.
The energy sector, for instance, is heating up again after hitting bottom in August.
We’re also seeing favorable price action in the agricultural commodities, so I’ll keep an eye out for you on this end.
One sector in particular, however, has huge upside profit potential. I’m talking about the not-so-precious metals, base metals — copper, steel, iron ore, aluminum and more.
The diversified metals and mining sector took a tumble in 2018, which continued into 2019. That’s because global economic growth has been slowing thanks to the trade war with China. But now there’s a “phase one” agreement taking place between President Trump and the Chinese… and I expect it to stick.
That’s because 2020 is an election year and you can bet Trump will pull out all the stops to win reelection. That means boosting the economy and stock market by next November.
In fact, the upside for stocks could be enormous! But not just any stocks.
Cyclicals Are Due for a Run
The deep cyclical sectors have been absolutely crushed due to the volatility-inducing trade war, and one of the hardest hit has been diversified miners — excluding gold and silver.
But now, with central banks around the world slashing interest rates and the beginning of a trade deal in place, you can bet we’ll soon see worldwide growth picking up again, and with it the return of inflation.
Yes, that’s good news for precious metals stocks too, but it’s especially bullish for the super-undervalued, nonprecious metal miners that are getting set to soar.
Diversified mining stocks didn’t benefit from the rally in gold and silver miners over the past year due to fears over slowing growth. That’s changed now, and base metals and mining stocks are about to play catch-up in a big way.
Just look at this chart:
You can see the long downtrend in the S&P Metals & Mining index since 2018.
But the sector bottomed in December 2018 and then retested that low in June 2019, and it held. Since then the sector has been moving up and will soon break out of this wedge formation to the upside.
How do I know for sure? Because we’ve seen this movie before.
What History Tells Us About Tomorrow
The last big global growth scare was in 2015–16, and metals stocks tumbled at first, but once the economy picked up again in 2016, mining stocks soared big-time.
This chart goes all the way back to the end of 2015, and you can clearly see the explosive gains for yourself in the base metals mining stocks.
In fact, this sector gained an astonishing 178.7% in just two years!
It’s all about to play out again, and the best way to profit is with a diversified basket of the leading global base metals and mining stocks.
For an easy way to play this for profit consider taking a stake in Freeport-McMoRan Inc. (NYSE: FCX).
Freeport is the world’s largest copper mining company. It’s incredibly cyclical because its fortunes are tied to the price of copper, which rises and falls along with the strength or weakness of the global economy.
Copper futures prices are already up nearly 8% from the low just over one month ago.
I’m betting that uptrend continues and leads to an upside breakout in FCX shares. Plus, the shares are trading under $10 a share right now and pay you a solid dividend yield of 2% while you wait for price appreciation.
Here’s to growing your wealth,