How to uncover the next opportunity in the resources market
If you want to successfully invest in the resources
market, you should only look to commodities that have recently went through huge busts.
You need to wait for the commodity in question to hit a bottom. Many times, this means waiting for the cost of production to rise above the cost of the commodity.
Once this happens, you minimise your downside risk. Wait until a new upward trend begins, then invest.
This is one of the secrets to making money in the cyclical resources market.
Don’t get caught up in any hype surrounding particular shares. Look for the busts and follow them through, Matt Badiali in Daily Wealth
The resources market is shaping up nicely
With the majority of resources down so much, there’s potential for the savvy investor to make a lot of money in the following years.
The big thing to watch at the moment is the production costs of different commodities. Once the production costs exceed the price of the resource, it’s can’t go on like this for much longer.
So there you have it, why you need to wait for resources to hit bust territory before investing in commodity stocks.
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Why China is about to trigger a new iron ore boom
And the one South African stock set to lead the comeback
Why is almost everyone sceptical about the Chinese growth story?
Why is everyone trying to predict when the next big financial crisis will come, instead of looking for investment opportunities?
Well that's what I've been busy doing for the last few months.
And I've identified a huge opportunity...in one specific type of stock...all thanks to China.
This opportunity is staring everyone in the face, yet most people can't see it.
That's because it centres around the biggest 'dog' in the resources sector of the last few years.
Of course, I'm talking about iron ore.
Since September 2011 its price per tonne has crashed over 40%.
But I can say with as much surety as my research allows:
The downward trend in iron ore prices is about to turn UP in a major way
And I've identified a uniquely positioned South African iron ore stock to lead the comeback.
Click here to read all the details on this breaking story...