When Billionaires Start Buying Mining Stocks, Should You Buy Too?
It seems as though billionaires have a greater resolve for seeking out money-making opportunities. When big investors like Ray Dalio and Stan Drunkenmiller make large moves, it’s usually worth paying attention to.
In the past few months, we have seen Wall Street become more bullish on gold stocks than we have seen in some time. While large mining stocks have seen some bearish conditions only about a year ago, many companies have been able to climb back since then. As a result, in 2019, we have seen an average growth rate of around 14% for the industry.
What the Analysts Are Saying About Mining Stocks?
Recently, Christopher LaFemina, an analyst at Jefferies, stated that he is upgrading several key mining stocks to higher price targets. LaFemina is in no way acting alone here as other analysts have also been upgrading these mining stocks. RBC analyst, Tyler Broda, for example, upgraded Rio Tinto (RIO) but he did not directly recommend it to investors. This is because many are still wary about the growth in the market.
This notion is due to the overarching theme of uncertainty amidst the stock market right now. This looming feeling comes as many believe the geopolitical tensions in the world could mean unpredictability for the market. Some key movers in the mining industry have seen growth. For example, both Cleveland-Cliffs (CLF) and AK Steel (AKS) shares enjoyed a 25% and 57% increase, respectively, this quarter so far.
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All in all, is it worth watching these companies at an individual level? Research seems to be the best friend of many prominent investors. The mining industry is no exception when it comes to research. With information being key, mining stocks and gold stocks remain a focus for many investors to pay attention to.
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