What do analysts think about resource outlook ??Norman Levine had this to say on BNN,today ( Aug,31) regarding the market outlook and his specific BHPStock pick. In general his comments bode well for a company like GENM .
Looks like our future is bright so hold on to your shares ,everyone !! We are about to ride a great tailwind !
------------
MARKET OUTLOOK:
Trying to predict short-term stock market movement is at best a mug’s game. Don’t waste your time. Think long-term. As to that, we believe that as global economies recover from COVID-19 lockdowns (and they are not recovering in a synchronized fashion as many believed they would) earnings, stock prices and, yes, interest rates will be going higher. That doesn’t mean it will be in any ways a guaranteed smooth ride and we expect corrections and pauses along the way as world stock markets have come a very long way since bottoming in March 2020 without more than just a brief pause along the way.
We would not panic and sell during those corrections, when they come, but use them as buying opportunities, especially in areas such as financials, resource and other cyclical stocks. We believe inflation will be higher and longer lasting than the bond market seems to be currently pricing in and we see the demand for and therefore the pricing of many commodities will be stronger than the market currently reflects. As these areas have become relatively small parts of most world indices (due to many years of growth stocks vastly outperforming value stocks) we may see these groups do well while the major indices do not.
BHP Group (BHP NYSE)
Bought on July 24, 2020 at $52.72
BHP is the world’s largest mining company, based in Australia, whose main products include copper, iron ore, oil and gas, and metallurgical coal. BHP stock has been weak recently for three reasons. First, it announced it was going to get out of the oil business by merging its oil assets with Woodside Petroleum and spin the resultant shares out to shareholders. We agree with this move as we believe BHP will have a higher valuation as a pure mining company. Second, BHP announced formally that it will begin to develop the Jansen potash property, and third, it announced it would delist from London and no longer be part of the FTSE 100 index.
I have long been of the belief that the only time investors should have a meaningful exposure to commodity stocks is when the price of the underlying commodities are rising or plateauing for a long time at a high and very profitable level. Metal prices, after a brief period of profit taking, are going up again.
That and the sell-off in shares that was related to non-operational issues makes it a good time to buy BHP