For those of us who have been around long enough to have experienced a handful of market cycles in the junior mining sector the current bleak sector sentiment isn't anything new. However, that doesn't make it any less painful. In fact, for many of us it makes it more painful because "Here we are again, it wasn't different this time after all!"
One of my favorite charts to reference is the chart of the market emotions cycle - it is timeless and can come in handy to help gauge the rollercoaster of emotions in individual stocks as well as broader market cycles:
This morning, I made a chat comment in the 'Boardroom' channel on CEO.ca that expressed what I was feeling in terms of sector sentiment:
In the last few months junior mining investors have been hit with a painful double-whammy of strong downtrends in share prices, AND an unusually large number of deeply negative fundamental news surprises across the sector. This has me pondering where we might be in the market emotions cycle.
Are we in the capitulation phase? Is this just the beginning of the panic? Or are investors becoming despondent?
Please take my Twitter poll here.