Sell the techs and buy the miners a good idea ?

As a start, here is the evolution of Nasdaq compared to the Dow Jones Industrial

Then the ratio of the first one compared to the other

We are near the 2000 level

We can notice that the Nasdaq (growth values) is strongly influenced by interest rates.

Recently, rates have been rising, which seems to have a negative impact on the evolution of the Nasdaq

If you compare technos to mining, the graph cannot be ruled

Further, we can compare the evolution of “gold” mining stocks with their underlying.

As some like to say: “The Mining companies are in the cellar”!

With the risk of repeating it again and again (timing is the most difficult), I find hard to understand that you can buy a tech co with 50 years of profits (even if it shows growth) and sell what integrates value (for example, companies with a tangible assets worth 500 million quoting in the market barely 100 million or – another example – a company that has a p/e of 5 offering a dividend yield of 2.5%. Yes you can find them ! 10x cheaper than a tech at 50)

go figure !

Do not hesitate to contact me if you would like some gold stocks ideas and do not forget to read my disclaimer about investments

Happy Investing

   Envoyer l'article en PDF