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iShares Global Materials ETF V.MXI


Primary Symbol: MXI

The fund seeks to track the investment results of an index composed of global equities in the materials sector. The fund seeks to track the investment results of the S&P Global 1200 Materials Index (the Underlying Index), which measures the performance of companies that S&P Dow Jones Indices LLC (SPDJI), a subsidiary of S&P Global, Inc., deems to be part of the materials sector of the economy and that SPDJI believes are important to global markets. It is a subset of the S&P Global 1200.


ARCA:MXI - Post by User

Comment by RichyRich$on Dec 19, 2015 3:39pm
83 Views
Post# 24398255

RE:RE:RE:RE:Aces High

RE:RE:RE:RE:Aces HighThe main risk question would be IamGold's risk of bankruptcy within a lock-up period of holding IMG for a few months to a year. There is no risk of bankruptcy in the next few months and years, as they have huge cash hoards now and would start up the Boto/Merrex operations for low cost gold in a few years. So with bankruptcy risk off thr table, if we were unlucky to get IMG shares at a high share price and pulls back hard. If one has a stomach for volatility and how the game is played, you simply wait for the next swing up before selling. Even if the longterm trend reversal doesn't happen next year, when prices are so low, the distance between falling tops is not that far. Eg. If IMG swings up to only $2.50 at the time of locking our shares in, and it pulls back hard to $1.00 a new low, the next rally up could peak at a lower high versus last time. So you could sell around $2.25. Then it could either keep going up as a long-term reversal, or pullback again looking for a new low. With patience you can ride out a strong pullback and sell after an upswing period. The benefit of this strategy is that you're not shooting yourself in the foot with opportunity cost loss if 2016 is the year gold and all the miners reverse into a bullish sector. That's what I believe, because the whole sector was already falling for 5 years now. Its very rare for a whole sector to drop longer than 5 years. I think Gold $1,000 would be rock bottom and then a reversal to a long-term uptrend is due. So I might not be looking to hedge. Will gauge the situation at the time. I think IamGold is low risk due to the large cash piles and they will eventually start operations in the Boto/Merrex area for low cost gold. I'm subscribed to a fundamental newsletter that has IamGold among its top picks even right now. I can't mention who the newsletter is, but its a respectable one with a proven track record and great ratings by Hulbert. IamGold is not that bad to hold with their huge pile of cash as a ssfety cushion. There's also the chance news of the Merrex buyout would hold IamGold's share price up.
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