For nearly two years, the global oil market has been flooded with excess supply. Yet, putting a strong bid under crude this year, punters have chosen to ignore this fact.
With more wells being drilled and produced, it seems like the supply story is set to get worse in the short term. Crude oil demand is still weakening.
There are two things driving Whitehaven’s share price. First: coal prices have firmed up over the last six months.
Gold. It has been one of the best performing commodities this year. That, and silver. Yet, one analyst doesn’t like gold… not the commodity price, anyway.
It’s an especially smart strategy in this volatile and high-risk market. Most investors have hated resources stocks for the past five years.
This doesn’t necessarily mean investors will become commodity bulls. However, it does open a real opportunity to invest in miners.
BlueScope Steel Limited [ASX:BSL] is a stock that is constantly moved by the commodities market. Following the energy rebound overnight, BSL recovered 2.18% by midday today.
Legendary investor Jim Rogers says, ‘war isn’t great for much else but commodities’. For this reason, if you want to hedge your portfolio against war, buy resource stocks.
The next great opportunity for Australia is another mining boom. There’s just one thing about this mining boom though. There’s no actual mining…
Italy’s stock market has been a rollercoaster ride this year. Italian banks have lost more than 50% of their market capitalisation.